Alaska Air Group (ALK) Stock Drops Despite Market Gains: Important Facts to Note

Alaska Air Group (ALK) ended the recent trading session at $51.18, demonstrating a -4.3% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.46%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.57%. The stock of airline has risen by 32.8% in the past month, leading the Transportation sector's gain of 9.63% and the S&P 500's gain of 4.22%.Market participants will be closely following the financial results of Alaska Air Group in its upcoming release. The company is expected to report EPS of $0.14, down 85.57% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $3.64 billion, indicating a 3.07% upward movement from the same quarter last year. ALK's full-year Zacks Consensus Estimates are calling for earnings of $2.17 per share and revenue of $14.25 billion. These results would represent year-over-year changes of -55.44% and +21.43%, respectively. It's also important for investors to be aware of any recent modifications to analyst estimates for Alaska Air Group. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 9.82% lower within the past month. Currently, Alaska Air Group is carrying a Zacks Rank of #3 (Hold). In terms of valuation, Alaska Air Group is presently being traded at a Forward P/E ratio of 24.61. This indicates a premium in contrast to its industry's Forward P/E of 12.37. Investors should also note that ALK has a PEG ratio of 1.21 right now. 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.87 based on yesterday's closing prices. The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 38% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow ALK in the coming trading sessions, be sure to utilize Zacks.com. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alaska Air Group, Inc. (ALK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks