Alaska Air Group (ALK) closed the most recent trading day at $50.21, moving +1.48% from the previous trading session. This change outpaced the S&P 500's 0.11% loss on the day. On the other hand, the Dow registered a gain of 0.91%, and the technology-centric Nasdaq decreased by 0.82%.
Shares of the airline witnessed a loss of 2.79% over the previous month, trailing the performance of the Transportation sector with its gain of 2.26%, and the S&P 500's gain of 5.17%.
The upcoming earnings release of Alaska Air Group will be of great interest to investors. On that day, Alaska Air Group is projected to report earnings of $1.57 per share, which would represent a year-over-year decline of 38.43%. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.65 per share and revenue of $14.21 billion. These totals would mark changes of -25.05% and +21.09%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alaska Air Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Alaska Air Group currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Alaska Air Group's current valuation metrics, including its Forward P/E ratio of 13.55. This valuation marks a premium compared to its industry average Forward P/E of 9.79.
It's also important to note that ALK currently trades at a PEG ratio of 0.5. 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. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.93.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 38% 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.
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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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