Why Alaska Air Group (ALK) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Alaska Air Group (ALK)
Alaska Air Group, together with its partner regional carriers, serves more than 120 cities across North America. The carrier’s mainline operating fleet includes 177 B737 jet aircrafts and 40 Airbus A320 family jets. Its regional operations include flights operated by Horizon Air, which was acquired in 1986 and SkyWest. The carrier's mainline and regional fleet strength at the end of 2021 was 217 and 94 respectively. The carrier serves more than 115 destinations.
ALK is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 9.3X for the current fiscal year compared to the Transportation - Airline industry's P/E of 13.6X. Additionally, ALK has a PEG Ratio of 0.5 and a Price/Cash Flow ratio of 6.8X. Value investors should also note ALK's Price/Sales ratio of 0.7X.
A company's earnings performance is important for value investors as well. For fiscal 2023, five analysts revised their earnings estimate higher in the last 60 days for ALK, while the Zacks Consensus Estimate has increased $0.40 to $5.58 per share. ALK also holds an average earnings surprise of 9%.
Investors should take the time to consider ALK for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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.