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Alaska Air Group (ALK) Stock Dips While Market Gains: Key Facts

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Alaska Air Group (ALK - Free Report) closed the latest trading day at $51.73, indicating a -1.47% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.09%.

Shares of the airline witnessed a gain of 0.9% over the previous month, trailing the performance of the Transportation sector with its gain of 7.55% and the S&P 500's gain of 7.21%.

The investment community will be closely monitoring the performance of Alaska Air Group in its forthcoming earnings report. The company is forecasted to report an EPS of $1.57, showcasing a 38.43% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.66 billion, indicating a 26.26% growth compared to the corresponding quarter of the prior year.

ALK's full-year Zacks Consensus Estimates are calling for earnings of $3.65 per share and revenue of $14.21 billion. These results would represent year-over-year changes of -25.05% and +21.09%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Alaska Air Group. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Alaska Air Group holds a Zacks Rank of #5 (Strong Sell).

Investors should also note Alaska Air Group's current valuation metrics, including its Forward P/E ratio of 14.38. This expresses a premium compared to the average Forward P/E of 9.23 of its industry.

It is also worth noting that ALK currently has a PEG ratio of 0.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ALK's industry had an average PEG ratio of 0.89 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 33% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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