Alaska Air Group (ALK) Ascends While Market Falls: Some Facts to Note

Alaska Air Group (ALK) closed the most recent trading day at $39.37, moving +1.97% from the previous trading session. This change outpaced the S&P 500's 0.19% loss on the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 0.54%.

Coming into today, shares of the airline had gained 5.58% in the past month. In that same time, the Transportation sector gained 2.1%, while the S&P 500 gained 3.18%.

Analysts and investors alike will be keeping a close eye on the performance of Alaska Air Group in its upcoming earnings disclosure. On that day, Alaska Air Group is projected to report earnings of -$1.18 per share, which would represent a year-over-year decline of 90.32%. At the same time, our most recent consensus estimate is projecting a revenue of $2.12 billion, reflecting a 3.31% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $4.28 per share and a revenue of $10.67 billion, demonstrating changes of -5.52% and +2.33%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alaska Air Group. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.76% downward. As of now, Alaska Air Group holds a Zacks Rank of #3 (Hold).

In terms of valuation, Alaska Air Group is presently being traded at a Forward P/E ratio of 9.02. This represents a premium compared to its industry's average Forward P/E of 8.67.

It is also worth noting that ALK currently has a PEG ratio of 0.8. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.72.

The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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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.

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