Analysts seem to like everything about the carrier, even its plan to grow at a relatively rapid pace of 8% to 9% during the current year. "While most investors are justifiably wary of airlines growing, Alaska's 2010 performance puts it in rarefied air," raved Stifel Nicolaus analyst Hunter Keay, in a recent report."Last year Alaska had the best year in the history of the company -- generating 10.7% ROIC on a weighted average cost of capital of 8% (the airline's calculations), and Alaska's 13% operating margin should be the best among U.S. majors," Keay wrote. "Alaska has consistently outgrown the industry over the past three years yet also consistently delivered superior returns. If this type of performance does not justify modest growth, we don't know what does."
Why Wall Street Loves Alaska Airlines
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.