Alaska Air Group Inc $ 39.58 0.23 (0.58%)
ALK News and Headlines - Alaska Air Group Inc
The Parnassus Endeavor Fund (Trades, Portfolio) released its third-quarter portfolio earlier this week, revealing potential value opportunities as the Covid-19 pandemic continues to impact the market.
The fund, which is part of Jerome Dodson (Trades, Portfolio)'s San Francisco-based Parnassus Investments, avoids investing in fossil fuel-related stocks. Rather, it prefers companies that have exemplary work environments and are known for being socially and environmentally responsible. With the goal of capital appreciation, the portfolio managers invest in discounted large-cap companies that have strong competitive advantages, relevant products and quality management teams.
With these criteria in mind,
In light of President Trump urging Congress to promote aid for airlines, three airline stocks that have a cash-to-debt ratio of at least 0.5 and are modestly undervalued based on the GuruFocus Value Line are Southwest Airlines Co. (LUV), Alaska Air Group Inc. (ALK) and JetBlue Airways Corp. (JBLU) according to the All-in-One Screener, a Premium feature of GuruFocus.
Dow sparks liftoff on airline aid hopes
On Wednesday, the Dow Jones Industrial Average closed at 28,303.46, up 530.70 points from Tuesday's close of 27,772.76 and a net 154.82 from Monday's close of 28,148.64.
Searching for stocks whose market capitalization surpasses $2 billion and whose price-book ratio is less than or equal to 1.5 could give investors a higher chance of uncovering value stocks.
Thus, value investors may want to consider the following stocks, as they meet the above-listed criteria.
Alaska Air Group Inc
The first company that makes the cut is Alaska Air Group Inc (ALK), a Seattle, Washington-based passenger and cargo airlines company providing clients with about 1,300 flights per day and serving about 115 destinations across North and Central America.
Shares were trading at a price of $35.76 each at
U.S. stocks were in the green on Friday following the worst day for the stock market since mid-March. At yesterday’s close, the Dow fell 7% and the S&P 500 and Nasdaq declined more than 5%. This morning, the Dow Jones Industrial Average gained 3.14% to 25,918, the S&P 500 index rose 2.76% to 3,084 and the Nasdaq Composite Index was up 2.81% to 9,759.
• Carnival Corporation & Plc (CCL) + 12%
• Delta Air Lines, Inc. (DAL) +9.8%
• The Boeing Company (BA) +9%
• Alaska Air Group, Inc. (ALK) +8.3%
• Alliance Data Systems
U.S. stocks were initially in the green on Thursday, before receding on a jobs report. Americans filed 1.88 million applications for unemployment benefits at the end of May. The Dow Jones Industrial Average fell 0.59% to 26,116, the S&P 500 Index declined 0.93% to 3,093 and the Nasdaq Composite Index was down 1.09% to 9,574.
- Delta Air Lines Inc. (DAL) +10.4%
- Alaska Air Group Inc. (ALK) +6.4%
- Southwest Airlines Co. (LUV) +5.5%
- Tyson Foods Inc. (TSN) +4.8%
- Boeing Co. (BA) +7%
- Nordstrom Inc. (JWN) +7%
- J.M. Smucker Co. (SJM) -3.7%
- Crown Castle
Alaska Air Group (ALK) cut 279 basis points off the Fund’s return, as the stock dove 57.7% from $67.75 to $28.47. Alaska is the fifth-largest airline in the country by miles flown with its legacy routes primarily on the West Coast in addition to some cross-country routes acquired after the acquisition of Virgin America. The company has a strong balance sheet, a cost-efficient fleet and shareholder-oriented management. Nevertheless, the stock hit the skids as the coronavirus outbreak engulfed the U.S., resulting in collapsing demand for air travel. Management has cut flights, suspended stock buybacks and the dividend and suspended
As of March 31, 2020, the net asset value (“NAV”) of the [url=https://www.gurufocus.com/StockBuy.php?GuruName=Parnassus+Endeavor+Fund]Parnassus Endeavor Fund[/url] ([url=https://www.gurufocus.com/StockBuy.php?GuruName=Parnassus+Endeavor+Fund]Trades[/url], [url=https://www.gurufocus.com/holdings.php?GuruName=Parnassus+Endeavor+Fund]Portfolio[/url])—Investor Shares was $28.62, so the total return for the quarter was a loss of 25.04%.
This compares to a loss of 19.60% for the S&P 500 Index (“S&P 500”) and a loss of 22.22% for the Lipper Multi-Cap Core Funds Average, which represents the average return of the multi-cap core funds followed by Lipper (“Lipper average”).
There are several reasons we underperformed this quarter. First, we have a lot of technology stocks in the portfolio, and we believe they tend to be more
Companies that have positive and steady net margin and operating margin are often good investments because they can return a solid profit to investors.
According to the GuruFocus discounted cash flow calculator as of April 8, the following undervalued companies have a high margin of safety and have grown their margins over a ten-year period.
Eaton Vance Corp.'s (EV) net and operating margin have grown 17.59% and 32.01% per annum, respectively, over the past 10 years.
According to the DCF calculator, the stock is undervalued with a 37.8% margin of safety
As of Tuesday, the GuruFocus All-in-One Screener, a Premium feature, found that the following airline stocks have low price-earnings ratios and have been bought by gurus. While some of them are great value investments, others may need to be researched more carefully, according to the discounted cash flow calculator.
With a market cap of $6.7 billion, American Airlines Group Inc. (AAL) has a price-earnings ratio of 4.18. According to the DCF calculator, the stock has a fair value of $40.77 while trading at $15.92.
The stock has lost 48% over the last 12 months and is
In light of the U.S. government providing targeted financial relief from the coronavirus impact on Friday, several airline stocks, including those owned by Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A)(BRK.B), helped propel markets from their two-year lows.
According to the Aggregated Portfolio of Gurus, a Premium feature, four airline stocks with high guru ownership include Delta Air Lines Inc. (DAL), Alaska Air Group Inc. (ALK), Spirit Airlines Inc. (SAVE) and Southwest Airlines Co. (LUV).
U.S. government announces stimulus deal, targeting airlines like Berkshire’s Delta
House Speaker Nancy Pelosi said U.S. lawmakers and the
Investors should search for large-cap stocks with earnings yields that are thrashing the returns of 20-year high-quality market corporate bonds if they want to discover value.
These bonds represent corporate loans issued by triple-A, double-A and single-A-rated companies. The high rate implies a very low investment risk for their holders, as the issuers of the corporate loans are unlikely to have financial problems.
According to the Federal Reserve Bank of St. Louis, these bonds are granting their holders a 3.49% monthly spot rate.
As a result, value investors may want to consider the following stocks since they have a price-earnings
As part of Jerome Dodson (Trades, Portfolio)’s San Francisco-based firm, the fund avoids fossil fuel-related stocks. Rather, it concentrates on companies that have exemplary work environments and are socially and environmentally responsible. With the goal of capital appreciation, the fund invests in discounted large-cap companies that have strong competitive advantages, relevant products or services and quality management teams.
Based on these criteria, the Endeavor Fund established positions in Arista Networks Inc. (ANET), W.W. Grainger Inc. (GWW), Agilent
The T. Rowe Price Equity Income Fund (PRFDX) bought shares of the following stocks in both the first and second quarters of 2019.
Alaska Air Group Inc. (ALK)
The fund raised its position by 24.73% in the first quarter and 3.96% in the second quarter. The stake has a weight of 0.79% in the portfolio.
With a market cap of $7.76 billion, the company operates airlines across the U.S., Canada and other regions. Its revenue of $8.26 billion has grown 14% on average annually over the last five years.
The Parnassus Endeavor Fund (Trades, Portfolio), part of Jerome Dodson (Trades, Portfolio)’s Parnassus Investments, disclosed two new positions in its second-quarter portfolio, which was released this week.
With the goal of capital appreciation, the San Francisco-based fund is interested in discounted, out-of-favor large-cap companies with strong competitive advantages, quality management teams and positive environmental, social and governance commitments. Known for its stance on social and environmental responsibility, Dodson’s firm looks for companies with good work environments and avoids investing in companies that produce, transport or sell fossil fuels.
Based on these criteria, the Endeavor
According to its website, the Los Angeles-based firm, which Ketterer founded in 2001 with Harry Hartford, seeks to achieve superior risk-adjusted returns by investing in mispriced equities in both developed and emerging markets.
Based on these criteria, the firm’s top five new buys for the quarter were Alaska Air Group Inc. (ALK), Marathon Petroleum Corp. (MPC), Synnex Corp. (SNX), FedEx Corp. (FDX) and Takeda Pharmaceutical Co. Ltd. (TAK).
Alaska Air Group
The guru invested in 3.16 million
Alaska Air Group Inc.Â (ALK)
In the second quarter, the firm boosted the stake by 248.8% and added another 49.75% in the third quarter.
With a market cap of $8.33 billion, the company operates Alaska, Virgin America and Horizon Air airlines. Its revenue of $8.18 billion has grown 13.10% over the last five years.
The $21.6 billion T. Rowe Price Equity Income Fund announced Tuesday that it added four new stocks from disparate industries to its portfolio in the third quarter.
The fund added Alaska Air Group Inc. (ALK), Evergy Inc. (EVRG), SL Green Realty Corp. (SLG) and AT&T Inc. (T), each making up less than 1% of the diversified portfolio. It has an outsized 26% weighting in financial services, followed by more even distribution across other sectors. The next largest is health care at 12.4% and energy at 11.2%.
John Linehan has managed the Equity Income Fund since taking over for Brian Rogers,
The following stocks have low price-earnings ratios and have been bought by gurus. While some of them are great investments, others need to be checked again, according to the discounted cash flow calculator.
With a market cap of $118 billion, British American Tobacco PLC (BTI) is trading with a price-earnings ratio of 2.2 and a price-sales ratio of 4.1. According to the discounted cash flow calculator, the stock has a fair value of $633.52 while trading at $54. The stock price has fallen 10.8% over the last 12 months and is currently 27.4% below its 52-week high and 8.06%
It’s been a quiet year for U.S. airlines even after threats of a price war dissipated in the early months of the year. But at least two of the airline companies have been standouts in the marketplace, beating peers on some key valuation metrics.
Buffett owns 27.7 million shares of the nation's third-largest airline by market cap, which in spite of a handful of publicity nightmares earlier this year,
The fund initiated top positions in the Manhattan-based real estate investment trust SL Green Realty Corp. (SLG), the West Coast airliner Alaska Air Group Inc. (ALK) and Kansas' largest electrical provider, Evergy Inc. (EVRG). It also started a smaller position in U.S. wireless carrier AT&T Inc. (T).
The fund held a total of 102 stocks for a quarter-over-quarter turnover of 4%. The majority of the equities are in financial services,