Alaska Air(US:ALK) ZACKS·2025-10-07 23:01Core Viewpoint - Alaska Air Group's stock performance has been under pressure, with a significant decline over the past month, while upcoming earnings are anticipated to show a substantial drop in EPS compared to the previous year [1][2]. Company Performance - Alaska Air Group closed at $49.00, reflecting a +1.11% change from the previous day, outperforming the S&P 500, which fell by 0.38% [1]. - Over the past month, shares have decreased by 23.91%, contrasting with a 1.49% gain in the Transportation sector and a 4.06% gain in the S&P 500 [1]. - The upcoming earnings report is scheduled for October 23, 2025, with an expected EPS of $1.16, down 48.44% year-over-year, and anticipated revenue of $3.75 billion, up 22.01% from the same quarter last year [2]. Annual Estimates - For the annual period, consensus estimates predict earnings of $3.22 per share and revenue of $14.28 billion, representing declines of -33.88% and increases of +21.67%, respectively, from the previous year [3]. Analyst Estimates - Recent adjustments to analyst estimates for Alaska Air Group are crucial as they reflect short-term business trends, with positive revisions indicating analysts' confidence in the company's performance [4]. - The Zacks Rank system, which incorporates these estimate changes, currently rates Alaska Air Group as 3 (Hold) [6]. Valuation Metrics - Alaska Air Group has a Forward P/E ratio of 15.04, which is a premium compared to the industry average of 10.05 [7]. - The company has a PEG ratio of 0.56, lower than the industry average PEG ratio of 0.81, indicating a potentially undervalued position relative to its expected earnings growth [7]. Industry Context - The Transportation - Airline industry is ranked 149 in the Zacks Industry Rank, placing it in the bottom 40% of over 250 industries, suggesting weaker performance compared to higher-ranked industries [8].