<div id="readability-page-1"><div><p>Alaska Air Group (ALK) has quietly put together an interesting year, with the stock up about 28% over the past month even though the longer term chart still looks mixed for holders.</p> <p>See our latest analysis for Alaska Air Group.</p> <p>That sharp 1 month share price return of about 28 percent stands out against a still negative year to date share price performance and a 1 year total shareholder return of roughly minus 24 percent. This suggests sentiment may be turning after a tougher stretch.</p> <p>If this rebound has you rethinking the travel space, it could also be a good moment to see what is happening across aerospace and defense stocks as another way to find transport exposed ideas.</p> <p>With earnings now rebounding, annual net income growth running strong and the share price still trading at a discount to analyst targets, is Alaska Air Group a recovering value story, or has the market already priced in its next leg of growth?</p> <h2>Most Popular Narrative: 21.5% Undervalued</h2> <p>With Alaska Air Group last closing at $51.38 against a narrative fair value near $65.47, the story leans toward upside if the long term plan lands as expected.</p> <blockquote> <p><em>The expansion and optimization of the Seattle international gateway, including new long haul routes and a growing fleet of Boeing 787s, positions Alaska Air Group to benefit from sustained urban growth and increasing travel demand in West Coast cities anticipated to drive higher passenger volumes and top line revenue growth.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Curious how this network overhaul supposedly transforms modest margins into something far more powerful, while the earnings multiple quietly drifts lower in the background? The full narrative unpacks the exact mix of revenue growth, margin lift, and share count moves that need to line up almost perfectly to justify that higher fair value.</p> <p><strong>Result: Fair Value of $65.47 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, elevated unit costs and integration risks around the Hawaiian Airlines deal could compress margins and derail the earnings trajectory that underpins the upside case.</p> <p>Find out about the key risks to this Alaska Air Group narrative.</p> <h2>Another Angle on Valuation</h2> <p>On earnings, Alaska Air Group looks anything but cheap, trading at about 39.7 times earnings versus roughly 9.5 times for the global airlines group and 11.6 times for peers, even though our fair ratio suggests the market could one day support closer to 63.7 times. Is this a mispriced runway for growth or a lot of hope already in the price?</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/10827873-511e-4aa5-8e8b-ddfdfd1b98cd/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/10827873-511e-4aa5-8e8b-ddfdfd1b98cd/chart/pe-multiple-vs-industry"/><figcaption>NYSE:ALK PE Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own Alaska Air Group Narrative</h2> <p>If you see the story differently or want to dig into the numbers yourself, you can build a fresh Alaska Air view in just minutes: Do it your way</p> <p>A great starting point for your Alaska Air Group research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.</p> <h2>Ready for more investment ideas?</h2> <p>Do not stop at a single stock when the Simply Wall Street Screener can quickly surface fresh, data backed opportunities that match your strategy and uncover hidden potential.</p> <ul> <li>Target reliable income streams by scanning these 10 dividend stocks with yields &gt; 3% that aim to reward patient investors with steady cash returns.</li> <li>Capitalize on the AI revolution by filtering for these 24 AI penny stocks positioned to turn advanced algorithms into lasting competitive advantages.</li> <li>Position yourself early in potential turnaround stories by reviewing these 901 undervalued stocks based on cash flows where prices may not yet reflect future cash flows.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

<p>Alaska Air Group's stock has rebounded by 28% in the past month, despite a negative year-to-date performance and a 24% decline over the past year. The stock is considered undervalued with a fair value of $65.47, compared to its last closing price of $51.38. The company is expanding its Seattle gateway and fleet, but faces risks from high unit costs and integration challenges with Hawaiian Airlines. It trades at a high PE ratio compared to peers, raising questions about its growth potential.</p>

Alaska Air Group (ALK): Revisiting Valuation After a Sharp 28% One-Month Share Price Rebound