In the latest trading session, Alaska Air Group (ALK) closed at $49.78, marking a -1.31% move from the previous day. This change lagged the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 0.31%.
Shares of the airline witnessed a loss of 19.66% over the previous month, trailing the performance of the Transportation sector with its loss of 0.05%, and the S&P 500's gain of 3.15%.
The investment community will be closely monitoring the performance of Alaska Air Group in its forthcoming earnings report. On that day, Alaska Air Group is projected to report earnings of $1.32 per share, which would represent a year-over-year decline of 41.33%. Meanwhile, our latest consensus estimate is calling for revenue of $3.73 billion, up 21.56% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.39 per share and a revenue of $14.25 billion, representing changes of -30.39% and +21.41%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Alaska Air Group. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 has moved 0.27% higher. Right now, Alaska Air Group possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Alaska Air Group is presently being traded at a Forward P/E ratio of 14.87. This valuation marks a premium compared to its industry average Forward P/E of 10.16.
One should further note that ALK currently holds a PEG ratio of 0.55. 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 0.8 at the close of the market yesterday.
The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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