In the latest trading session, Alaska Air Group (ALK) closed at $62.29, marking a -2.2% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.37%.
Prior to today's trading, shares of the airline had gained 24.54% outpaced the Transportation sector's gain of 1.99% and the S&P 500's gain of 1.85%.
Analysts and investors alike will be keeping a close eye on the performance of Alaska Air Group in its upcoming earnings disclosure. The company is expected to report EPS of $1.35, down 40% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $3.73 billion, reflecting a 21.46% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.38 per share and revenue of $14.25 billion. These totals would mark changes of -30.6% and +21.44%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Alaska Air Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Alaska Air Group is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Alaska Air Group has a Forward P/E ratio of 18.83 right now. This valuation marks a premium compared to its industry average Forward P/E of 10.52.
We can additionally observe that ALK currently boasts a PEG ratio of 0.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Transportation - Airline industry stood at 0.82 at the close of the market yesterday.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 25% 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.
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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