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Alaska Air Group (ALK) Gains But Lags Market: What You Should Know

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Alaska Air Group (ALK) closed the most recent trading day at $40.51, moving +0.22% from the previous trading session. This move lagged the S&P 500's daily gain of 2.45%. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.4%.

Prior to today's trading, shares of the airline had lost 13% over the past month. This has lagged the Transportation sector's loss of 4.82% and the S&P 500's loss of 5.71% in that time.

Investors will be hoping for strength from Alaska Air Group as it approaches its next earnings release. In that report, analysts expect Alaska Air Group to post earnings of $1.81 per share. This would mark year-over-year growth of 703.33%. Our most recent consensus estimate is calling for quarterly revenue of $2.53 billion, up 65.85% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.05 per share and revenue of $9.55 billion, which would represent changes of +299.51% and +54.67%, respectively, from the prior 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. 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. 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. The Zacks Consensus EPS estimate has moved 3.36% higher within the past month. Alaska Air Group currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Alaska Air Group currently has a Forward P/E ratio of 9.99. For comparison, its industry has an average Forward P/E of 17.85, which means Alaska Air Group is trading at a discount to the group.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% 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

Want 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
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