American Airlines Vs. Alaska Air: Which Is The Better Buy Heading Into Q4 Earnings?
Portfolio Pulse from Surbhi Jain
American Airlines (AAL) and Alaska Air (ALK) are set to report Q4 earnings on Jan. 25. AAL's stock is down 12% over the past year with expected EPS of 10 cents and $13.02 billion in revenue. ALK's stock is down 28% after a mid-air incident involving a Boeing 737 Max 9, with expected EPS of 18 cents and $2.55 billion in revenue. AAL has a global presence but high debt levels, while ALK has a strong West Coast presence and healthier balance sheet. Analysts predict more upside potential for ALK than AAL.
January 24, 2024 | 5:28 pm
News sentiment analysis
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POSITIVE IMPACT
Alaska Air's stock is down 28% over the past year, with an expected Q4 EPS of 18 cents and $2.55 billion in revenue. Analysts predict a 43.21% upside, despite recent reputational damage.
Despite the recent incident and stock decline, ALK's healthier balance sheet and analyst predictions of significant upside potential could attract investor interest.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
American Airlines is expected to report Q4 earnings with an EPS of 10 cents and $13.02 billion in revenue. The stock is down 12% over the past year and analysts see a 9.72% upside.
While AAL's expected earnings are modest and the stock has declined, the analyst consensus suggests a potential upside. However, high debt levels may temper investor enthusiasm.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
SkyWest Airlines, a regional partner of Alaska Air, may see indirect effects from Alaska Air's performance and the recent Boeing incident.
As a regional partner, SkyWest's stock may be influenced by Alaska Air's financial results and any reputational impact from the Boeing incident, though the effect is likely to be less direct.
CONFIDENCE 60
IMPORTANCE 40
RELEVANCE 30
NEGATIVE IMPACT
Boeing's reputation may be impacted by the mid-air incident involving its 737 Max 9 aircraft, which led to the grounding of the model and affected Alaska Air's stock.
Boeing's involvement in the Alaska Air incident could lead to negative sentiment in the short term, impacting the stock price as safety concerns resurface.
CONFIDENCE 65
IMPORTANCE 50
RELEVANCE 60