In the latest market close, Alaska Air Group (ALK – Free Report) reached $49.04, with a -0.37% movement compared to the previous day. This move lagged the S&P 500’s daily gain of 0.38%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq appreciated by 0.87%.
The airline’s shares have seen a decrease of 29.59% over the last month, not keeping up with the Transportation sector’s loss of 7.25% and the S&P 500’s loss of 5.59%.
Investors will be eagerly watching for the performance of Alaska Air Group in its upcoming earnings disclosure. The company is predicted to post an EPS of -$0.64, indicating a 30.43% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.22 billion, up 44.15% from the year-ago period.
ALK’s full-year Zacks Consensus Estimates are calling for earnings of $5.96 per share and revenue of $14.74 billion. These results would represent year-over-year changes of +22.38% and +25.63%, respectively.
Any recent changes to analyst estimates for Alaska Air Group should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 1.02% lower. Right now, Alaska Air Group possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Alaska Air Group currently has a Forward P/E ratio of 8.25. For comparison, its industry has an average Forward P/E of 8.25, which means Alaska Air Group is trading at no noticeable deviation to the group.
Also, we should mention that ALK has a PEG ratio of 0.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. As the market closed yesterday, the Transportation – Airline industry was having an average PEG ratio of 0.64.
The Transportation – Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 21% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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