Back to top

Image: Bigstock

Alaska Air Group (ALK) Stock Moves -1.82%: What You Should Know

Read MoreHide Full Article

Alaska Air Group (ALK - Free Report) closed at $48.66 in the latest trading session, marking a -1.82% move from the prior day. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.31%.

Shares of the airline witnessed a loss of 5.56% over the previous month, trailing the performance of the Transportation sector with its gain of 2.86%, and the S&P 500's gain of 5.05%.

Market participants will be closely following the financial results of Alaska Air Group in its upcoming release. On that day, Alaska Air Group is projected to report earnings of $1.57 per share, which would represent a year-over-year decline of 38.43%. 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.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.65 per share and revenue of $14.21 billion, indicating changes of -25.05% and +21.09%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Alaska Air Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Alaska Air Group is currently a Zacks Rank #3 (Hold).

Digging into valuation, Alaska Air Group currently has a Forward P/E ratio of 13.57. This expresses a premium compared to the average Forward P/E of 9.59 of its industry.

Investors should also note that ALK has a PEG ratio of 0.5 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ALK's industry had an average PEG ratio of 0.88 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 48, finds itself in the top 20% echelons of all 250+ industries.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Alaska Air Group, Inc. (ALK) - free report >>

Published in