(ALK) Alaska Air - Ratings and Ratios

Alaska Air Group, Inc. operates as a holding company for Alaska Airlines and Horizon Air, offering scheduled passenger and cargo air transportation services. The company’s core operations are divided into three segments: Alaska Airlines, Hawaiian Airlines, and Regional. Alaska Airlines focuses on long-haul routes, primarily using Boeing 737 and Airbus A320 aircraft, while Horizon Air operates shorter-distance flights using Bombardier Q400 turboprops. The company serves destinations across the United States, Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas. Established in 1932 and headquartered in Seattle, Washington, Alaska Air Group has built a reputation for its customer-centric approach and operational efficiency.

The company’s network spans over 300 destinations, with a strong presence in the Pacific Northwest and Alaska. Its fleet consists of 330 aircraft, including Boeing 737-800, -900, and -700 models, as well as regional jets and turboprops. Alaska Air Group has strategically expanded its route network through acquisitions, including the purchase of Virgin America in 2016. The company also participates in cargo transportation, leveraging its passenger aircraft belly space for freight. Alaska Air Group is committed to sustainability, with initiatives to reduce carbon emissions and improve fuel efficiency.

From a financial perspective, Alaska Air Group has demonstrated resilience in a challenging industry. The company’s market capitalization stands at $5.55 billion, with a price-to-earnings ratio of 14.67, indicating moderate valuation relative to its earnings. The forward P/E of 10.50 suggests investor expectations of improved profitability. The price-to-book ratio of 1.27 reflects the company’s asset valuation, while the price-to-sales ratio of 0.47 highlights its revenue generation efficiency. With a return on equity of 9.03%, Alaska Air Group demonstrates solid profitability compared to its peers.

From a technical standpoint, Alaska Air Group’s stock (NYSE:ALK) has shown recent weakness, with the 20-day moving average at $45.72, above the last price of $41.91. The 50-day moving average of $55.88 and the 200-day moving average of $51.57 indicate a downward trend. The Average True Range (ATR) of 3.07 suggests moderate volatility. The average 20-day volume of 3,983,350 shares reflects consistent trading activity.

3-Month Forecast: - Technical Outlook: ALK’s stock price may face resistance near $45.72 (SMA 20) and $51.57 (SMA 200). Support levels could emerge around $38-$40, based on historical price action. - Fundamental Outlook: Expect improving profitability as demand for air travel stabilizes and operational efficiencies take hold. The forward P/E of 10.50 signals potential upside as earnings recover. - Volatility: With an ATR of 3.07, price fluctuations of 6-9% over the next quarter are possible, depending on broader market conditions and industry-specific developments.