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Alaska Air Group (ALK) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest trading session, Alaska Air Group (ALK - Free Report) closed at $52.60, marking a -0.15% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.56%. On the other hand, the Dow registered a gain of 0.42%, and the technology-centric Nasdaq increased by 0.83%.
Prior to today's trading, shares of the airline had gained 9.96% over the past month. This has outpaced the Transportation sector's gain of 4.93% and the S&P 500's gain of 3.11% in that time.
Investors will be eagerly watching for the performance of Alaska Air Group in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.36, reflecting a 20% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.44 billion, up 34.57% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.26 per share and a revenue of $11.64 billion, representing changes of -5.96% and +11.61%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Alaska Air Group. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.33% higher. Right now, Alaska Air Group possesses a Zacks Rank of #3 (Hold).
Investors should also note Alaska Air Group's current valuation metrics, including its Forward P/E ratio of 12.38. Its industry sports an average Forward P/E of 10.04, so one might conclude that Alaska Air Group is trading at a premium comparatively.
We can additionally observe that ALK currently boasts a PEG ratio of 1.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 1.17.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 26, this industry ranks in the top 11% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Alaska Air Group (ALK) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, Alaska Air Group (ALK - Free Report) closed at $52.60, marking a -0.15% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.56%. On the other hand, the Dow registered a gain of 0.42%, and the technology-centric Nasdaq increased by 0.83%.
Prior to today's trading, shares of the airline had gained 9.96% over the past month. This has outpaced the Transportation sector's gain of 4.93% and the S&P 500's gain of 3.11% in that time.
Investors will be eagerly watching for the performance of Alaska Air Group in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.36, reflecting a 20% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.44 billion, up 34.57% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.26 per share and a revenue of $11.64 billion, representing changes of -5.96% and +11.61%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Alaska Air Group. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.33% higher. Right now, Alaska Air Group possesses a Zacks Rank of #3 (Hold).
Investors should also note Alaska Air Group's current valuation metrics, including its Forward P/E ratio of 12.38. Its industry sports an average Forward P/E of 10.04, so one might conclude that Alaska Air Group is trading at a premium comparatively.
We can additionally observe that ALK currently boasts a PEG ratio of 1.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 1.17.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 26, this industry ranks in the top 11% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.