Alaska Air Group (ALK) closed at $40.78 in the latest trading session, marking a -0.22% move from the prior day. This move was narrower than the S&P 500's daily loss of 2.01%. Meanwhile, the Dow lost 1.56%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Coming into today, shares of the airline had lost 15.61% in the past month. In that same time, the Transportation sector lost 5.5%, while the S&P 500 lost 6.08%.
Wall Street will be looking for positivity from Alaska Air Group as it approaches its next earnings report date. The company is expected to report EPS of $1.89, up 730% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.56 billion, up 67.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.77 per share and revenue of $9.46 billion, which would represent changes of +285.71% and +53.12%, 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.68% lower 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 10.84. Its industry sports an average Forward P/E of 16.2, so we one might conclude that Alaska Air Group is trading at a discount comparatively.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 25% 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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