Yahoo Finance Alaska Air Group (ALK) Stock Slides as Market Rises: Facts to Know Before You Trade
Alaska Air Group (ALK) ended the recent trading session at $41.01, demonstrating a -1.2% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.23%. Meanwhile, the Dow experienced a drop of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.34%.
Heading into today, shares of the airline had lost 4.53% over the past month, lagging the Transportation sector's loss of 4.3% and the S&P 500's gain of 3.96% in that time.
Market participants will be closely following the financial results of Alaska Air Group in its upcoming release. On that day, Alaska Air Group is projected to report earnings of $2.37 per share, which would represent a year-over-year decline of 21%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.98 billion, indicating a 5.16% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $4.69 per share and a revenue of $10.93 billion, demonstrating changes of +3.53% and +4.84%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Alaska Air Group. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.08% rise in the Zacks Consensus EPS estimate. Alaska Air Group is currently a Zacks Rank #3 (Hold).
In the context of valuation, Alaska Air Group is at present trading with a Forward P/E ratio of 8.86. This indicates a discount in contrast to its industry's Forward P/E of 8.88.
Investors should also note that ALK has a PEG ratio of 0.56 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.84 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
