Alaska Air Group (ALK) closed the most recent trading day at $48.36, moving +1.9% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.38%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq lost 4.19%.
Heading into today, shares of the airline had gained 8.11% over the past month, outpacing the Transportation sector's loss of 0.53% and the S&P 500's gain of 3.78% in that time.
Alaska Air Group will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alaska Air Group to post earnings of $2.49 per share. This would mark 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.30 per share and revenue of $10.49 billion. These totals would mark changes of +44.83% and +8.8%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Alaska Air Group. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Alaska Air Group is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Alaska Air Group has a Forward P/E ratio of 7.53 right now. For comparison, its industry has an average Forward P/E of 10.46, which means Alaska Air Group is trading at a discount to the group.
We can also see that ALK currently has a PEG ratio of 0.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Airline industry currently had an average PEG ratio of 0.31 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.