Allegiant Travel (ALGT) Advances While Market Declines: Some Information for Investors
The latest trading session saw Allegiant Travel (ALGT) ending at $67.61, denoting a +0.84% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.65% for the day. On the other hand, the Dow registered a loss of 0.49%, and the technology-centric Nasdaq decreased by 0.96%.
The travel services company's stock has dropped by 18.39% in the past month, falling short of the Transportation sector's gain of 1.47% and the S&P 500's gain of 3.27%.
Analysts and investors alike will be keeping a close eye on the performance of Allegiant Travel in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.29, reflecting a 57.57% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $657.5 million, up 1.2% from the prior-year quarter.
ALGT's full-year Zacks Consensus Estimates are calling for earnings of $6.68 per share and revenue of $2.74 billion. These results would represent year-over-year changes of -8.62% and +9.04%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Allegiant Travel. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 10.44% decrease. Allegiant Travel currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Allegiant Travel is currently trading at a Forward P/E ratio of 10.04. For comparison, its industry has an average Forward P/E of 8.69, which means Allegiant Travel is trading at a premium to the group.
We can additionally observe that ALGT currently boasts a PEG ratio of 0.8. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.72.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Allegiant Travel Company (ALGT) : Free Stock Analysis Report
