What's Going On With Alaska Air Stock?

Alaska Air Group, Inc. ALK shares are trading flat Monday, and the stock is down by more than 7% over the past month.

What To Know:

Alaska Air shares have hit some turbulence in January following the incident of the loss of one of a Boeing 737 Max 9 door plug mid-flight. Alaska Air has since returned some of its Max 9s to service after thorough inspections.

According to a report from the Wall Street Journal, it seems increasingly likely that the bolts required to secure the door plug to the aircraft were missing when the plane left the Boeing Company BA factory in Renton, WA. According to sources, Boeing and industry officials believe that Boeing employees failed to replace the bolts after reinstalling the 737 Max 9 plug door after opening or removing it during production.

According to data from Benzinga Pro, Alaska Air shares are trading below the stock’s 50-day moving average of $37.24 and slightly above its 52-week low of $30.75.

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Is ALK A Good Buy: An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.

For example, for Alaska Air Group ALK, you'll notice that earnings in its last quarter grew 66.67% source. As an investor, you'll want to decide whether that's better or worse than what you'd like to see among stocks in your portfolio.

On the valuation side, Alaska Air's price to earnings ratio – a measure of how much an investor pays for the company's earnings – is compressed 93.57% in the current quarter when compared with last year. That places it above similar businesses Ryanair Holdings, Delta Air Lines, Southwest Airlines in its sector. You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.

There are many different valuation metrics that may help you make a decision. Find more on Alaska Air Group's quote page, or if you'd like a deeper dive in an advanced program, try Benzinga PRO for free.

ALK Price Action: According to Benzinga Pro, Alaska Air shares are down 0.46% at $36.94 at the time of publication.

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