Yahoo Finance Southwest Airlines (LUV) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Southwest Airlines (LUV) closed at $30, marking a -0.23% move from the previous day. This change lagged the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 1.54%.
Prior to today's trading, shares of the airline had gained 1.38% over the past month. This has outpaced the Transportation sector's gain of 1.32% and lagged the S&P 500's gain of 4.14% in that time.
Southwest Airlines will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.01, down 22.31% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.96 billion, up 3.51% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.62 per share and revenue of $26.72 billion, which would represent changes of +125.86% and +12.21%, respectively, from the prior year.
Any recent changes to analyst estimates for Southwest Airlines should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.06% higher. Southwest Airlines is currently a Zacks Rank #3 (Hold).
Digging into valuation, Southwest Airlines currently has a Forward P/E ratio of 11.48. For comparison, its industry has an average Forward P/E of 10.34, which means Southwest Airlines is trading at a premium to the group.
Meanwhile, LUV's PEG ratio is currently 0.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Airline was holding an average PEG ratio of 0.33 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow LUV in the coming trading sessions, be sure to utilize Zacks.com.
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Southwest Airlines Co. (LUV) : Free Stock Analysis Report
