Trade-Ideas: Alaska Air Group (ALK) Is Today's New Lifetime High Stock

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 $66.9 million.
  • ALK has traded 1,650 shares today.
  • ALK is trading at a new lifetime high.

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More 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 1.2%. ALK has a PE ratio of 11.2. Currently there are 7 analysts that rate Alaska Air Group a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Alaska Air Group has been 813,300 shares per day over the past 30 days. Alaska Air Group has a market cap of $5.5 billion and is part of the services sector and transportation industry. The stock has a beta of 1.02 and a short float of 3.6% with 3.21 days to cover. Shares are up 11.2% year-to-date as of the close of trading on Friday.

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, notable return on equity, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 81.96% and other important driving factors, this stock has surged by 62.78% 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.
  • ALK's revenue growth trails the industry average of 31.6%. Since the same quarter one year prior, revenues slightly increased by 6.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Airlines industry and the overall market, ALASKA AIR GROUP INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Net operating cash flow has increased to $159.00 million or 37.42% when compared to the same quarter last year. Despite an increase in cash flow, ALASKA AIR GROUP INC's cash flow growth rate is still lower than the industry average growth rate of 65.18%.
  • The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.

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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