Alaska Air Group (ALK) closed at $48.27 in the latest trading session, marking a +2.22% move from the prior day. This change outpaced the S&P 500's 1.56% gain on the day. At the same time, the Dow added 1.29%, and the tech-heavy Nasdaq gained 2.21%.
The stock of airline has fallen by 25.49% in the past month, lagging the Transportation sector's loss of 1.12% and the S&P 500's gain of 0.41%.
Market participants will be closely following the financial results of Alaska Air Group in its upcoming release. The company plans to announce its earnings on October 23, 2025. On that day, Alaska Air Group is projected to report earnings of $1.11 per share, which would represent a year-over-year decline of 50.67%. At the same time, our most recent consensus estimate is projecting a revenue of $3.75 billion, reflecting a 22.21% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.02 per share and a revenue of $14.28 billion, demonstrating changes of -37.99% and +21.69%, respectively, from the preceding 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, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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, 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 moved 10.8% lower. Alaska Air Group is currently sporting a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Alaska Air Group is currently exchanging hands at a Forward P/E ratio of 15.65. This valuation marks a premium compared to its industry average Forward P/E of 9.77.
One should further note that ALK currently holds a PEG ratio of 0.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.73 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 37% 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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