Allegiant Travel (ALGT) Stock Jumps 6.2%: Will It Continue to Soar?

Allegiant Travel (ALGT) shares rallied 6.2% in the last trading session to close at $58.37. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.4% loss over the past four weeks.

The uptick was primarily due to ALGT's rosy traffic numbers for May. In May, scheduled traffic (measured in revenue passenger miles) rose 10.2% year over year at Allegiant. Capacity (measured in available seat miles) for scheduled service rose 16.3% year over year. Total departures (scheduled services) rose 16.2% in May 2025 from a year ago. Moreover, the company’s average stage length (miles) inched up 0.2% year over year. For the total system (including scheduled service and fixed-fee contracts), Allegiant carried 9.4% more passengers in May 2025 than the year-ago levels. System-wide capacity improved 16.5% in May 2025 on a year-over-year basis.

This travel services company is expected to post quarterly earnings of $0.84 per share in its upcoming report, which represents a year-over-year change of -52.5%. Revenues are expected to be $697.4 million, up 4.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Allegiant Travel, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ALGT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Allegiant Travel belongs to the Zacks Transportation - Airline industry. Another stock from the same industry, Southwest Airlines (LUV), closed the last trading session 3% higher at $33.41. Over the past month, LUV has returned -2%.

For Southwest, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.52. This represents a change of -10.3% from what the company reported a year ago. Southwest currently has a Zacks Rank of #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research