Should Value Investors Buy Alaska Air Group (ALK) Stock?

Core Viewpoint - The focus is on identifying undervalued companies through value investing strategies, utilizing metrics like P/E and PEG ratios to highlight strong investment opportunities [1] Group 1: Alaska Air Group (ALK) - Alaska Air Group (ALK) has a Zacks Rank of 1 (Strong Buy) and an A for Value [2] - The stock is currently trading with a P/E ratio of 7.04, significantly lower than the industry average of 18.01 [2] - ALK's Forward P/E has fluctuated between 5.47 and 9.26 over the last 12 months, with a median of 7.54 [2] - The PEG ratio for ALK is 0.42, compared to the industry average of 0.99, indicating strong value [2] - ALK's PEG has ranged from 0.41 to 0.90 in the past year, with a median of 0.57 [2] Group 2: International Consolidated Airlines Group (ICAGY) - International Consolidated Airlines Group (ICAGY) also holds a Zacks Rank of 1 (Strong Buy) with a Value score of A [2] - ICAGY is trading at a forward earnings multiple of 4.99, well below the industry average P/E of 18.01 [3] - The PEG ratio for ICAGY is 0.81, compared to the industry average of 0.99 [3] - ICAGY's price-to-earnings ratio has varied from 3.80 to 5.13, with a median of 4.30 over the past year [3] - The P/B ratio for ICAGY is 1.04, significantly lower than the industry's price-to-book ratio of 4.98 [3] - ICAGY's P/B has fluctuated between 0.78 and 1.65, with a median of 1.01 in the last 12 months [3] Group 3: Investment Outlook - Both ALK and ICAGY are highlighted as likely undervalued stocks based on their strong value grades and earnings outlook [3]