In the latest market close, Alaska Air Group (ALK – Free Report) reached $64.87, with a -1.46% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.07%. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 1.19%.
The airline’s stock has climbed by 25.15% in the past month, exceeding the Transportation sector’s loss of 6.6% and the S&P 500’s loss of 0.36%.
The investment community will be paying close attention to the earnings performance of Alaska Air Group in its upcoming release. The company’s earnings per share (EPS) are projected to be $0.45, reflecting a 50% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.49 billion, indicating a 36.57% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $4.35 per share and a revenue of $11.8 billion, demonstrating changes of -3.97% and +13.17%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Alaska Air Group. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.78% upward. Alaska Air Group is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Alaska Air Group is presently being traded at a Forward P/E ratio of 15.14. This signifies a premium in comparison to the average Forward P/E of 10.29 for its industry.
It’s also important to note that ALK currently trades at a PEG ratio of 0.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As of the close of trade yesterday, the Transportation – Airline industry held an average PEG ratio of 0.99.
The Transportation – Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 26, finds itself in the top 11% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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