In the most recent trading session, Allegiant Travel (ALGT) closed at $67.61, adjusting +0.84% from previous closing price. The stock outperformed the S&P 500, which fell 0.65% on the day. Meanwhile, the Dow Jones Industrial Average fell 0.49%, and the tech-heavy Nasdaq fell 0.96%.
The company's stock has fallen 18.39% over the past month, lagging the Transportation sector's gain of 1.47% and the S&P 500's gain of 3.27%.
Analysts and investors alike will be keeping an eye on Allegiant Travel's performance in its upcoming earnings release. The company's earnings per share (EPS) are expected to be $1.29, down 57.57% from the same period last year. Meanwhile, our latest consensus forecast calls for sales of $657.5 million, up 1.2% year-over-year.
ALGT's full-year Zacks Consensus Estimates are calling for earnings of $6.68 per share and revenue of $2.74 billion. These results represent year-over-year changes of -8.62% and +9.04%, respectively.
It is also important for investors to note recent revisions to analyst estimates for Allegiant Travel. Such recent changes usually indicate a change in the status of short-term business trends. As such, positive estimate revisions indicate analyst confidence in the company's business performance and earnings potential.
Our research shows that these estimate adjustments are directly related to impending stock performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which considers these estimate changes and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has an impressive, outside-audited history of outperformance, with #1 stocks having an average annual +25% profit. Over the past 30 days, his Zacks Consensus EPS estimate has decreased 10.44%. Allegiant Travel currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Allegiant Travel is currently trading at a forward P/E of 10.04. For comparison, its industry's average Forward P/E is 8.69, which means Allegiant Travel is trading at a premium to the group.
Additionally, we can see that ALGT currently sports a PEG ratio of 0.8. Compared to the widely accepted P/E ratio, the PEG ratio also explains a company's expected earnings growth. As of yesterday's close, the average PEG ratio for the Transportation & Aviation industry was 0.72.
Transportation – The aviation industry is part of the transportation sector. This industry currently has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the vitality of specific industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Track all of these stock price movement metrics and more with Zacks.com in the coming trading sessions.
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