In the latest trading session, Alaska Air Group (ALK) closed at $44.84, marking a -0.2% move from the previous day. This change lagged the S&P 500's daily gain of 0.99%.
Coming into today, shares of the airline had gained 3.36% in the past month. In that same time, the Transportation sector lost 2.37%, while the S&P 500 gained 0.42%.
Wall Street will be looking for positivity from Alaska Air Group as it approaches its next earnings report date. On that day, Alaska Air Group is projected to report earnings of $2.49 per share, which would represent year-over-year growth of 13.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.77 billion, up 4.08% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.30 per share and revenue of $10.49 billion, which would represent changes of +44.83% and +8.8%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Alaska Air Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Alaska Air Group is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Alaska Air Group is holding a Forward P/E ratio of 7.13. For comparison, its industry has an average Forward P/E of 10.07, which means Alaska Air Group is trading at a discount to the group.
Investors should also note that ALK has a PEG ratio of 0.29 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. ALK's industry had an average PEG ratio of 0.33 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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