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Alaska Air Group (ALK) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest trading session, Alaska Air Group (ALK - Free Report) closed at $51.24, marking a -2.25% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.16% for the day. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 1.81%.
Heading into today, shares of the airline had gained 34.24% over the past month, outpacing the Transportation sector's gain of 7.7% and the S&P 500's gain of 1.03%.
The investment community will be closely monitoring the performance of Alaska Air Group in its forthcoming earnings report. On that day, Alaska Air Group is projected to report earnings of $0.19 per share, which would represent a year-over-year decline of 80.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.65 billion, up 3.34% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2.22 per share and a revenue of $14.26 billion, demonstrating changes of -54.41% and +21.51%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Alaska Air Group. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.84% lower. Alaska Air Group is currently a Zacks Rank #3 (Hold).
Investors should also note Alaska Air Group's current valuation metrics, including its Forward P/E ratio of 23.61. This denotes a premium relative to the industry average Forward P/E of 12.15.
One should further note that ALK currently holds a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Airline industry currently had an average PEG ratio of 0.85 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 143, finds itself in the bottom 43% echelons of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Alaska Air Group (ALK) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest trading session, Alaska Air Group (ALK - Free Report) closed at $51.24, marking a -2.25% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.16% for the day. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 1.81%.
Heading into today, shares of the airline had gained 34.24% over the past month, outpacing the Transportation sector's gain of 7.7% and the S&P 500's gain of 1.03%.
The investment community will be closely monitoring the performance of Alaska Air Group in its forthcoming earnings report. On that day, Alaska Air Group is projected to report earnings of $0.19 per share, which would represent a year-over-year decline of 80.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.65 billion, up 3.34% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2.22 per share and a revenue of $14.26 billion, demonstrating changes of -54.41% and +21.51%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Alaska Air Group. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.84% lower. Alaska Air Group is currently a Zacks Rank #3 (Hold).
Investors should also note Alaska Air Group's current valuation metrics, including its Forward P/E ratio of 23.61. This denotes a premium relative to the industry average Forward P/E of 12.15.
One should further note that ALK currently holds a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Airline industry currently had an average PEG ratio of 0.85 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 143, finds itself in the bottom 43% echelons of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.