Alaska Air (ALK), the nation’s 5th largest carrier, reported a remarkable reversal last quarter, as it more than doubled sales from the same quarter a year earlier. The report indicated that it may have turned the corner and begun recovering from the Covid travel shutdown. On Wednesday, the Relative Strength (RS) Rating for Alaska Air stock rose to 72, up from 68 the prior day.
The 72 RS Rating means Seattle-based Alaska Air is outpacing 72% of all stocks on price performance. It’s an improvement but the stock has work to do. Market research shows that stocks that go on to make the biggest gains typically have an 80 or higher RS Rating in the early stages of their moves. See if Alaska Air can continue to show renewed price strength and hit that benchmark.
Alaska Air Stock Popular With Big Investors
Among other key ratings, Alaska Air stock has a weak 42 Composite Rating, of a possible 99, after being battered by the Covid crash last year. However, investors are seeing light at the end of the runway. The parent of its namesake airline, as well as Virgin America and Horizon, boasts a B- Accumulation/Distribution Rating, on an A+ to E scale. That reflects moderately strong buying of its shares by institutional investors.
Additionally, its relative strength line, the blue line on every MarketSmith chart, has been trending higher since mid-August, a bullish sign. The RS line compares a stock’s performance vs. the S&P 500.
Top and bottom line growth moved higher in the company’s most recent quarter, reported on July 22. Earnings improved 91% to a 30-cents-per-share loss, compared to a $3.57 a share loss the same quarter a year ago. Revenue for the quarter shot up 263% to $1.53 billion. That’s a remarkable number given that it’s about double the sales it reported the prior three quarters. The next quarterly results are due on or around Oct. 22.
Peers In Airline Group
Meanwhile, Alaska Air stock is traveling a healthy distance above its 50-day line and working on a consolidation with a 74.35 entry. See if it can break out in heavy trading.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.
This unique Relative Strength Rating measures technical performance by using a 1 (worst) to 99 (best) score that shows how a stock’s price action over the last 52 weeks stacks up against all the other stocks in our database.
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