Why Alaska Air Group (ALK) is a Top Value Stock for the Long-Term
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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.
Why Investors Should Pay Attention to This Value Stock
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 (ALK)
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 boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Alaska Air Group are trading at a forward earnings multiple of 8.6X, as well as a PEG Ratio of 0.5, a Price/Cash Flow ratio of 4.9X, and a Price/Sales ratio of 0.5X.
Many value investors pay close attention to a company's earnings as well. For ALK, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.44 to $4.62 per share for 2024. Per share ALK boasts an average earnings surprise of 21.9%.
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