Allegiant Travel (ALGT) Suffers a Larger Drop Than the General Market: Key Insights
Allegiant Travel (ALGT) closed the latest trading day at $74.52, indicating a -0.32% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.25%.
Heading into today, shares of the travel services company had lost 9.17% over the past month, lagging the Transportation sector's loss of 3.89% and the S&P 500's loss of 1.6% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Allegiant Travel in its upcoming earnings disclosure. The company is expected to report EPS of $0.13, up 124.07% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $583.69 million, indicating a 4.17% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $8.50 per share and a revenue of $2.55 billion, demonstrating changes of +171.57% and +10.66%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Allegiant Travel. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 15.34% lower. At present, Allegiant Travel boasts a Zacks Rank of #4 (Sell).
Looking at its valuation, Allegiant Travel is holding a Forward P/E ratio of 8.79. This signifies a premium in comparison to the average Forward P/E of 7.04 for its industry.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 230, this industry ranks in the bottom 9% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Allegiant Travel Company (ALGT) : Free Stock Analysis Report
