NEW YORK (TheStreet) -- Shares of Alaska Air Group (ALK) are up 1.14% to $60.45 in pre-market trade after Barron's endorsed the Seattle-based airline, saying "Alaska Air has a much brighter future than investors may realize." Despite consistent profits, innovation, and sky-high customer satisfaction, shares remain undervalued, the publication reports.
Like many airlines, Alaska Air has handily outperformed the S&P 500 in the past year, but its 63% rise means it has trailed nearly every single one of its peers: Softness in its regional business and worries about Delta Airlines (DAL) pushing into its main Seattle hub have kept some investors at bay, Barron's noted.
Those worries, however, are likely to melt away. Like other carriers, Alaska should benefit from lower oil prices and its focus on the domestic market makes it less vulnerable to a strengthening dollar than international airlines, Barron's said.
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Separately, TheStreet Ratings team rates ALASKA AIR GROUP INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALASKA AIR GROUP INC (ALK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, expanding profit margins, 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 has had sub par growth in net income."