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Alaska Air Group (ALK) Dips More Than Broader Markets: What You Should Know

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Alaska Air Group (ALK) closed at $40.34 in the latest trading session, marking a -1.35% move from the prior day. This move lagged the S&P 500's daily loss of 1.15%. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 0.37%.

Heading into today, shares of the airline had lost 7.07% over the past month, lagging the Transportation sector's loss of 5.79% and the S&P 500's loss of 5.08% in that time.

Investors will be hoping for strength from Alaska Air Group as it approaches its next earnings release. In that report, analysts expect Alaska Air Group to post earnings of $1.85 per share. This would mark year-over-year growth of 716.67%. Our most recent consensus estimate is calling for quarterly revenue of $2.56 billion, up 67.88% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.84 per share and revenue of $9.46 billion, which would represent changes of +289.16% and +53.15%, respectively, from the prior 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. 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 10.58% lower. Alaska Air Group is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Alaska Air Group is holding a Forward P/E ratio of 10.65. Its industry sports an average Forward P/E of 17.71, so we one might conclude that Alaska Air Group is trading at a discount comparatively.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 16% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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