New Lifetime High Today: Alaska Air Group (ALK)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Alaska Air Group (ALK) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Alaska Air Group as such a stock due to the following factors:
- ALK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.5 million.
- ALK has traded 731 shares today.
- ALK is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ALK with the Ticky from Trade-Ideas. See the FREE profile for ALK NOW at Trade-IdeasMore details on ALK: Alaska Air Group, Inc., through its subsidiaries, provides passengers and cargo air transportation services in the United States. The company operates through Alaska Mainline and Alaska Regional segments. It serves approximately 100 cities in Alaska, the Lower 48, Hawaii, Canada and Mexico. The stock currently has a dividend yield of 1%. ALK has a PE ratio of 12.0. Currently there are 8 analysts that rate Alaska Air Group a buy, 1 analyst rates it a sell, and 4 rate it a hold.The average volume for Alaska Air Group has been 738,000 shares per day over the past 30 days. Alaska Air Group has a market cap of $6.6 billion and is part of the services sector and transportation industry. The stock has a beta of 1.09 and a short float of 4% with 5.00 days to cover. Shares are up 32% year-to-date as of the close of trading on Thursday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Alaska Air Group as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.Highlights from the ratings report include:
- The revenue growth significantly trails the industry average of 42.7%. Since the same quarter one year prior, revenues slightly increased by 7.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Airlines industry and the overall market, ALASKA AIR GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 164.70% and other important driving factors, this stock has surged by 68.25% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ALK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ALASKA AIR GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, ALASKA AIR GROUP INC increased its bottom line by earning $7.17 versus $4.37 in the prior year. For the next year, the market is expecting a contraction of 0.4% in earnings ($7.14 versus $7.17).
- You can view the full Alaska Air Group Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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