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Alaska Air Group (ALK) Suffers a Larger Drop Than the General Market: Key Insights
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Alaska Air Group (ALK - Free Report) ended the recent trading session at $42.34, demonstrating a -2.13% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.21% for the day. Meanwhile, the Dow experienced a drop of 0.07%, and the technology-dominated Nasdaq saw an increase of 0.01%.
The stock of airline has fallen by 28.15% in the past month, lagging the Transportation sector's loss of 5.18% and the S&P 500's loss of 2.26%.
Market participants will be closely following the financial results of Alaska Air Group in its upcoming release. The company is predicted to post an EPS of -$0.81, indicating a 5.19% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.3 billion, up 5.23% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.5 per share and revenue of $15.42 billion, indicating changes of +125.41% and +8.32%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Alaska Air Group. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained stagnant. Alaska Air Group is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Alaska Air Group is currently exchanging hands at a Forward P/E ratio of 7.87. This denotes a discount relative to the industry average Forward P/E of 8.28.
Also, we should mention that ALK has a PEG ratio of 0.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Airline was holding an average PEG ratio of 0.48 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 21, placing it within the top 9% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Suffers a Larger Drop Than the General Market: Key Insights
Alaska Air Group (ALK - Free Report) ended the recent trading session at $42.34, demonstrating a -2.13% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.21% for the day. Meanwhile, the Dow experienced a drop of 0.07%, and the technology-dominated Nasdaq saw an increase of 0.01%.
The stock of airline has fallen by 28.15% in the past month, lagging the Transportation sector's loss of 5.18% and the S&P 500's loss of 2.26%.
Market participants will be closely following the financial results of Alaska Air Group in its upcoming release. The company is predicted to post an EPS of -$0.81, indicating a 5.19% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.3 billion, up 5.23% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.5 per share and revenue of $15.42 billion, indicating changes of +125.41% and +8.32%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Alaska Air Group. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained stagnant. Alaska Air Group is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Alaska Air Group is currently exchanging hands at a Forward P/E ratio of 7.87. This denotes a discount relative to the industry average Forward P/E of 8.28.
Also, we should mention that ALK has a PEG ratio of 0.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Airline was holding an average PEG ratio of 0.48 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 21, placing it within the top 9% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.