In the latest market close, Alaska Air Group (ALK) reached $64.40, with a +0.66% movement compared to the previous day. The stock outpaced the S&P 500’s daily gain of 0.55%. On the other hand, the Dow registered a loss of 0.06%, and the technology-centric Nasdaq increased by 1.24%.
Analysts and investors alike will be keeping a close eye on the performance of Alaska Air Group in its upcoming earnings disclosure. The company’s upcoming EPS is projected at $0.47, signifying a 56.67% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.5 billion, reflecting a 36.91% rise from the equivalent quarter last year.
It is also important to note the recent changes to analyst estimates for Alaska Air Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 an 8.62% rise in the Zacks Consensus EPS estimate. Alaska Air Group currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Alaska Air Group is presently being traded at a Forward P/E ratio of 10.95. This denotes a premium relative to the industry’s average Forward P/E of 9.2.
It is also worth noting that ALK currently has a PEG ratio of 0.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Transportation – Airline was holding an average PEG ratio of 0.75 at yesterday’s closing price.
The Transportation – Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 19, positioning it in the top 8% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
