Alaska Air Focusing On Execution, But The Shares Are Lagging

Alaska Air (ALK) enjoys a good reputation for the quality of its operations and management execution, but the "what have you done for me lately?" world of Wall Street doesn't reward that on a consistent basis. To that end, while I had some concerns in my last article about weaker sentiment across the airline sector, Alaska Air has underperformed, largely on what I believe to be concerns about near-term weakness in fares in its West Coast and Hawaiian operations.

Alaska Air's concentration on the West Coast remains a risk factor, but I believe the quality of the operation is still undervalued, and with a significant upturn in free cash flow on the way (barring a major deterioration in the sector), I believe management will be in a good place to return more capital to shareholders. Below $80, I think the shares are worth a look.

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Alaska Air Focusing On Execution, But The Shares Are Lagging