In the latest close session, Alaska Air Group (ALK) was up +1.6% at $47.73. This move outpaced the S&P 500's daily gain of 0.96%. Meanwhile, the Dow experienced a rise of 0.89%, and the technology-dominated Nasdaq saw an increase of 0.94%.
Shares of the airline have depreciated by 7.36% over the course of the past month, underperforming the Transportation sector's loss of 2.22%, and the S&P 500's gain of 0.5%.
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 predicted to post an EPS of $1.57, indicating a 38.43% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.66 billion, indicating a 26.26% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.65 per share and revenue of $14.21 billion, indicating changes of -25.05% and +21.09%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alaska Air Group. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Alaska Air Group possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Alaska Air Group is currently being traded at a Forward P/E ratio of 12.87. This signifies a premium in comparison to the average Forward P/E of 9.05 for its industry.
It's also important to note that ALK currently trades at a PEG ratio of 0.48. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.84.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 29% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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