Alaska Air Group (ALK) closed at $53.12 in the latest trading session, marking a +2.85% move from the prior day. This change outpaced the S&P 500's 0.54% gain on the day. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq increased by 0.74%.
Coming into today, shares of the airline had gained 10.2% in the past month. In that same time, the Transportation sector gained 2.66%, while the S&P 500 gained 4.2%.
The investment community will be paying close attention to the earnings performance of Alaska Air Group in its upcoming release. The company is slated to reveal its earnings on July 23, 2025. The company is forecasted to report an EPS of $1.56, showcasing a 38.82% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.66 billion, indicating a 26.27% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.47 per share and a revenue of $14.17 billion, indicating changes of -28.75% and +20.76%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alaska Air Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.91% decrease. Right now, Alaska Air Group possesses a Zacks Rank of #4 (Sell).
In terms of valuation, Alaska Air Group is presently being traded at a Forward P/E ratio of 14.88. This represents a premium compared to its industry average Forward P/E of 10.09.
It's also important to note that ALK currently trades at a PEG ratio of 0.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Airline industry currently 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 has a Zacks Industry Rank of 155, which puts it in the bottom 38% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alaska Air Group, Inc. (ALK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
