For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Alaska Air Group, together with its partner regional carriers, serves more than 120 cities across North America. Alaska Air Group operates two airlines, Alaska and Horizon.
ALK is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 12X for the current fiscal year compared to the Transportation - Airline industry's P/E of 9.2X. Additionally, ALK has a PEG Ratio of 0.4 and a Price/Cash Flow ratio of 7.6X. Value investors should also note ALK's Price/Sales ratio of 0.8X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.26 to $6.03 per share. ALK has an average earnings surprise of 33.1%.
ALK should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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