In the latest trading session, Alaska Air Group (ALK) closed at $52.54, marking a -3.03% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.22%.
The airline's shares have seen an increase of 9.15% over the last month, surpassing the Transportation sector's gain of 3.6% and the S&P 500's gain of 4.07%.
Analysts and investors alike will be keeping a close eye on the performance of Alaska Air Group in its upcoming earnings disclosure. The company's earnings report is set to go public on July 23, 2025. In that report, analysts expect Alaska Air Group to post earnings of $1.7 per share. This would mark a year-over-year decline of 33.33%. Alongside, our most recent consensus estimate is anticipating revenue of $3.66 billion, indicating a 26.23% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.74 per share and a revenue of $14.18 billion, indicating changes of -23.2% and +20.82%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Alaska Air Group. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.13% lower. Alaska Air Group currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Alaska Air Group currently has a Forward P/E ratio of 14.49. This indicates a premium in contrast to its industry's Forward P/E of 10.64.
It is also worth noting that ALK currently has a PEG ratio of 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.9.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 32% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Alaska Air Group, Inc. (ALK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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