Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?
Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Alaska Air Group, Inc. ALK.
Alaska Air Group in Focus
ALK may be an interesting play thanks to its forward PE of 9.7, its P/S ratio of 1, and its decent dividend yield of 2%. These factors suggest that Alaska Air Group is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that ALK has decent revenue metrics to back up its earnings.
Alaska Air Group, Inc. PE Ratio (TTM)
Alaska Air Group, Inc. PE Ratio (TTM) | Alaska Air Group, Inc. Quote
But before you think that Alaska Air Group is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 1.4% in the past 30 days, thanks to four upward revisions in the past one month compared to two lower.
This estimate strength is actually enough to push ALK to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So really, Alaska Air Group is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.
Zacks' Best Stock-Picking Strategy
It's hard to believe, even for us at Zacks. But from 2000-2018, while the market gained +4.8% per year, our top stock-picking strategy averaged +54.3% per year.
How has that screen done lately? From 2017-2018, it sextupled the market's +15.8% gain with a soaring +98.3% return.
Free – See the Stocks It Turned Up for Today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research