Alaska Air Group (ALK) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, Alaska Air Group (ALK) closed at $36.96, marking a -0.67% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.51%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.58%.
Coming into today, shares of the airline had gained 3.39% in the past month. In that same time, the Transportation sector gained 3.82%, while the S&P 500 gained 2.94%.
Analysts and investors alike will be keeping a close eye on the performance of Alaska Air Group in its upcoming earnings disclosure. The company's upcoming EPS is projected at -$1.17, signifying an 88.71% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.12 billion, showing a 3.31% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.29 per share and a revenue of $10.67 billion, demonstrating changes of -5.3% and +2.33%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Alaska Air Group. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.62% lower. As of now, Alaska Air Group holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Alaska Air Group is holding a Forward P/E ratio of 8.68. For comparison, its industry has an average Forward P/E of 8.53, which means Alaska Air Group is trading at a premium to the group.
One should further note that ALK currently holds a PEG ratio of 0.92. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ALK's industry had an average PEG ratio of 0.6 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% 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.
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Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
