Back to top

Image: Bigstock

Alaska Air Group (ALK) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Alaska Air Group (ALK - Free Report) closed the most recent trading day at $27.86, moving -0.54% from the previous trading session. This change lagged the S&P 500's 1.47% gain on the day. Meanwhile, the Dow gained 1.51%, and the Nasdaq, a tech-heavy index, added 1.11%.

Heading into today, shares of the airline had lost 13.79% over the past month, lagging the Transportation sector's gain of 8.97% and the S&P 500's gain of 16.09% in that time.

ALK will be looking to display strength as it nears its next earnings release, which is expected to be May 5, 2020. In that report, analysts expect ALK to post earnings of -$1.33 per share. This would mark a year-over-year decline of 882.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.69 billion, down 9.86% from the year-ago period.

ALK's full-year Zacks Consensus Estimates are calling for earnings of -$3.55 per share and revenue of $5.35 billion. These results would represent year-over-year changes of -155.3% and -39.13%, respectively.

It is also important to note the recent changes to analyst estimates for ALK. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 270.4% lower within the past month. ALK currently has a Zacks Rank of #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% 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.

To follow ALK in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

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

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

Published in