Alaska Air Group Stock Earns IBD Rating Upgrade

Alaska Air Group (ALK) stock investors have reason to celebrate as the company's IBD SmartSelect Composite Rating has risen to 99, indicating that the stock is outpacing 99% of all stocks in terms of the most important stock-picking criteria. This upgrade comes on the heels of a strong earnings report and a recent acquisition that has bolstered the company's market position and competitive dynamics within the regional airline sector.



The upgrade in ALK's IBD SmartSelect Composite Rating to 99 suggests that the stock is a top performer in the market and has significant growth potential. This high rating is a testament to the company's strong fundamentals and positive momentum. In addition to this upgrade, ALK's Relative Strength (RS) Rating was also upgraded from 64 to 77, indicating an improvement in the stock's technical performance.



Alaska Air Group's recent acquisition of Hawaiian Airlines has significantly enhanced the company's market position and competitive dynamics within the regional airline sector. By acquiring Hawaiian Airlines, ALK has expanded its reach to the lucrative Hawaii market, which was previously dominated by competitors like Hawaiian Airlines and Southwest Airlines. This expansion allows ALK to offer more destinations and routes to its customers, increasing its appeal and market share.

The integration of Hawaiian Airlines is expected to start adding to ALK's profits in 2025, driving earnings growth for the company. ALK's FY25 EPS guidance is more than $5.75 per share, with the current Zacks Consensus at $5.90 or 21% growth. Additionally, ALK's EPS is projected to soar another 29% in FY26, indicating the long-term potential of the Hawaiian Airlines acquisition.



In conclusion, the upgrade in ALK's IBD SmartSelect Composite Rating to 99, coupled with the improvement in its RS Rating, suggests that the stock is a top performer in the market with significant growth potential. The recent acquisition of Hawaiian Airlines has further bolstered the company's market position and competitive dynamics within the regional airline sector, driving earnings growth and long-term success. Investors should consider ALK as a strong contender in the airline industry and a potential addition to their portfolios.