Alaska Air Group ALK Declines More Than Market: Some Information for Investors

Delta shares rose after CEO Ed Bastian acknowledged the company may have gone too far with changes to its loyalty program, and promised modifications. Alaska Air Group, Inc. (ALK Quick QuoteALK – Free Report) is scheduled to report third-quarter 2023 results on Oct 19, before market open. Upgrade to MarketBeat All Access to add more stocks to your watchlist. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. ALK earnings call for the period ending September 30, 2022. ALK earnings call for the period ending December 31, 2022.

The restrictions, under the CARES Act, prohibited airlines from paying dividends or buying back shares till Sep 30, 2022. The buybacks are being made under the $1 billion repurchase plan, cleared by the board of directors in August 2015. Recent stocks from this report have soared up to +178.7% in 3 months – this month’s picks could be even better.

Bausch Health’s (BHC) Q2 Earnings & Sales Beat, ’23 View Raised

ODFL delivered a trailing four-quarter earnings surprise of 3.86%, on average. KEX has an expected earnings growth rate of 56.92% for third-quarter 2023. KEX delivered a trailing four-quarter earnings surprise of 8.03%, on average. The top line jumped 7% year over year, with passenger revenues accounting for 91.5% of the top line and increasing 7% due to continued recovery in air-travel demand. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.

Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. ALK’s industry had an average PEG ratio of 0.32 as of yesterday’s close. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 14.44% decrease. At present, Alaska Air Group boasts a Zacks Rank of #3 (Hold).

Based on an average daily trading volume, of 1,930,000 shares, the short-interest ratio is presently 2.2 days. 10 Wall Street analysts have issued 12 month price objectives for Alaska Air Group’s stock. Their ALK share price forecasts range from $41.00 to $70.00.

Alaska Air expects to boost its fleet and also workforce in 2023 to meet the anticipated high demand. LSTR delivered a trailing four-quarter earnings surprise of 1.71%, on average. The Zacks Consensus Estimate for Alaska Air’s third-quarter 2023 revenues is pegged at $2.88 billion, indicating 1.7% growth year over year. The top line is likely to have been aided bycontinued recovery in air-travel demand. Alaska Air Group’s stock was trading at $42.94 at the start of the year. Since then, ALK shares have decreased by 23.0% and is now trading at $33.07.

Ryder, which currently carries a Zacks Rank #2, is benefiting from its consistent efforts to reward shareholders through dividends and share repurchases. For third-quarter and full-year 2023, GATX’s earnings are expected to register 36.6% and 14.3% growth, respectively, on a year-over-year basis. GATX, which presently carries a Zacks Rank #2 (Buy), has strengthened its railcar asp net mvc developer job description july 2023 leasing operations. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Some better-ranked stocks for investors interested in the Zacks Transportation sector are GATX Corporation (GATX Quick QuoteGATX – Free Report) and Ryder System (R Quick QuoteR – Free Report) . Alaska Air’s declining current ratio (a measure of liquidity) is concerning.

Analysts Offer Insights on Healthcare Companies: BridgeBio Pharma (BBIO) and Alkermes (ALKS)

This signifies a discount in comparison to the average Forward P/E of 7.16 for its industry. Alaska Air Group’s most recent n/a dividend payment of $0.3750 per share was made to shareholders on Thursday, March 5, 2020. Investors keep underestimating the West Coast airline’s earnings potential. The company continues to expect share repurchases of at least $100 million in FY23. Use these ten stocks to generate a safe and reliable source of investment income.

These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook. The airline’s stock has dropped by 14.53% in the past month, falling short of the Transportation sector’s loss of 3.22% and the S&P 500’s loss of 2.4%.

Southwest, JetBlue, and Other Airline Stocks Fall. A New Fear Is Emerging.

Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Reduction in this key ratio generally implies that the company’s ability to generate cash is on the fall. Moreover, a current ratio of less than 1 often implies that review mergers and acquisitions for dummies the company doesn’t have enough liquid assets to cover its short-term liabilities. On a shareholder-friendly note, ALK’s management resumed share buybacks this year.

Price Target and Rating

It ended the quarter with a debt-to-capitalization ratio of 48%. Alaska Air reported an operating income of 337 million (+80% Y/Y). Alkemy Capital Investments’ stock was trading at GBX 245 on January 1st, 2023. Since then, ALK shares have decreased by 53.5% and is now trading at GBX 114.

The company also focuses on designing, developing, constructing, and operating of the plant that produces lithium hydroxide monohydrate. The company was formerly known as Alkemy Capital Plc and changed its name to Alkemy Capital Investments Plc in February 2021. Alkemy Capital Investments Plc was incorporated in 2021 and is based in London, the United Kingdom. Use these time-tested investing strategies to grow the monthly retirement income that your stock portfolio generates.

However, expenses related to fuel prices are likely to have weighed on ALK’s bottom-line growth. Alaska Air now expects the fuel cost per gallon in the $3.15-$3.25 band (the earlier guidance was in the $2.7-$2.8 range). Alaska Air Group updated its third quarter 2023 earnings guidance on Wednesday, September, 13th. The company trading with plus500 issued revenue guidance of $2.86 billion-$2.88 billion, compared to the consensus revenue estimate of $2.88 billion. Alaska Air Group saw a increase in short interest in September. As of September 30th, there was short interest totaling 4,320,000 shares, an increase of 14.9% from the September 15th total of 3,760,000 shares.

Viatris (VTRS) Q2 Earnings Beat, Generics Business Grows

In second-quarter 2023, ALK repurchased 871,987 shares for almost $39 million. The company expects share repurchases of at least $100 million in 2023. An improvement in air-travel demand bodes well for the company. The carrier is seeing continued improvement in air-travel demand. On the back of upbeat air-travel demand and favorable pricing, Alaska Air’s top line increased 16% year over year in the first half of 2023.

On average, they anticipate the company’s share price to reach $60.63 in the next twelve months. This suggests a possible upside of 83.3% from the stock’s current price. View analysts price targets for ALK or view top-rated stocks among Wall Street analysts. ALK reported second-quarter FY23 operating revenue growth of 7% year-over-year to $2.84 billion, beating the consensus of $2.77 billion.