Alaska Air Group (ALK) closed at $44.64 in the latest trading session, marking a -0.56% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.67%. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 0.13%.
Coming into today, shares of the airline had gained 1.26% in the past month. In that same time, the Transportation sector gained 6.21%, while the S&P 500 gained 3.65%.
Alaska Air Group will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alaska Air Group to post earnings of $2.34 per share. This would mark year-over-year growth of 59.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.81 billion, up 43.98% from the year-ago period.
ALK's full-year Zacks Consensus Estimates are calling for earnings of $4.37 per share and revenue of $9.63 billion. These results would represent year-over-year changes of +315.27% and +55.95%, respectively.
Investors might also notice recent changes to analyst estimates for Alaska Air Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% lower. Alaska Air Group is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Alaska Air Group is holding a Forward P/E ratio of 10.27. For comparison, its industry has an average Forward P/E of 13.23, which means Alaska Air Group is trading at a discount to the group.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 134, which puts it in the bottom 47% of all 250+ industries.
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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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