2 Stocks To Watch After Crushing Q4 EPS Expectations: ALK, TRV


Cutout paper illustration representing scheme and Stocks inscriptionImage Source: PexelsThe Q4 earnings season has remained strong with companies from various sectors standing out in this week’s lineup. Notably, as of yesterday, earnings from the S&P 500 members were up 19.2% from Q4 2023.Able to crush their bottom-line expectations on Thursday, here are two intriguing stocks to keep an eye on in the coming weeks.

Alaska Air Group – ALK, Zacks Rank #1 (Strong Buy)
 Alaska Air Group (ALK – Free Report)  stood out in the transportation sector as Q4 EPS of $0.97 blasted estimates of $0.47 a share by 106%. More impressive, this soared from $0.30 per share in the prior-year quarter.Furthermore, last year’s acquisition of Hawaiian Airlines could be very lucrative with Alaska Air Group stating the integration should start adding to its profits in 2025.Acquiring Hawaiian Airlines has put the company in a position to take market share from popular regional carriers like Delta Air Lines (DAL – Free Report)  and Southwest Airlines (LUV – Free Report). Zacks Investment Research
Image Source: Zacks Investment ResearchOverall, Alaska Air Group’s annual earnings were up 7% in fiscal 2024 to $4.87 per share.  Offering FY25 EPS guidance, Alaska Air Group expects earnings of more than $5.75 a share with the current Zacks Consensus at $5.90 or 21% growth. Plus, Alaska Air Group’s EPS is projected to soar another 29% in FY26.Zacks Investment Research
Image Source: Zacks Investment Research

The Travelers Companies – TRV, Zacks Rank #3 (Hold)
 Posting a 39% EPS surprise, The Travelers Companies (TRV – Free Report)  Q4 earnings came in at $9.15 a share compared to expectations of $6.57. This spiked from EPS of $7.01 in the comparative quarter.The property casualty insurance giant attributed its strong fiscal year to growth in earned premiums, underwriting probability, and a higher level of net investment income (NII).Zacks Investment Research
Image Source: Zacks Investment ResearchHighlighting a 19.2% return on equity, The Travelers Companies’ full-year income spiked 64% to more than $5 billion or $21.58 per share versus EPS of $13.13 in 2023. The company also generated its highest level of operating cash flow at $9.1 billion.Based on Zacks estimates, The Travelers Companies’ annual earnings are expected to dip -6% in FY25 but are projected to rebound and rise 9% in FY26 to $22.19 per share.Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line
 Favorable momentum could be ahead for Alaska Air Group and The Travelers Companies stock. To that point, many analysts have started to raise their price targets for ALK and TRV after stellar Q4 earnings.  More By This Author:American Express Beats Q4 Earnings And Revenue Estimates
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