Alaska Air (ALK) Stock Emerges as Top Investment Choice: Here’s Why

• Alaska Air Group (ALK) is witnessing an increase in air-travel demand, particularly on the leisure front, making the ALK stock an attractive investment opportunity.
• The Zacks Consensus Estimate for current-quarter and current-year earnings has been revised upwards by 8.3% and 13.1% respectively over the past 60 days, reflecting brokers’ confidence in the stock.
• Driven by the positive air-travel demand scenario, shares of ALK have gained 21.8% over the past three months, outperforming its industry’s growth of 13.5% in the same timeframe.

Alaska Air Group (ALK) is gaining traction from an uptick in air-travel demand, making it an interesting investment opportunity. With upward revisions in earnings estimates and impressive price performance, the stock is set for growth.

Northward Earnings Estimates

The Zacks Consensus Estimate for ALK’s current-quarter and current-year earnings has been revised 8.3% and 13.1% upward, over the past 60 days, respectively. This favorable estimate revision reflects brokers’ confidence in the stock and serves as a key indicator in determining the price of a stock.

Upbeat Air-Travel Demand

Alaska Air is witnessing a steady recovery in air-travel demand. As a result of this upbeat demand and favorable pricing, Alaska Air’s top line increased by 8% year over year in 2023. The company anticipates second-quarter 2024 earnings per share to be between $2.20 and $2.40. To meet the increasing demand, ALK is boosting capacity and expects available seat miles (a measure of capacity) to increase in the range of 5-7% in the second quarter of 2024 from second-quarter 2023 actuals.

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