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Southwest Airlines (LUV) Dips More Than Broader Markets: What You Should Know
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Southwest Airlines (LUV - Free Report) closed the most recent trading day at $31.41, moving -0.79% from the previous trading session. This move lagged the S&P 500's daily loss of 0.65%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq gained 0.18%.
Coming into today, shares of the airline had lost 18.34% in the past month. In that same time, the Transportation sector lost 14.3%, while the S&P 500 lost 11.07%.
Southwest Airlines will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect Southwest Airlines to post earnings of $0.43 per share. This would mark year-over-year growth of 286.96%. Our most recent consensus estimate is calling for quarterly revenue of $6.22 billion, up 33.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.13 per share and revenue of $24.11 billion. These totals would mark changes of +199.07% and +52.71%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Southwest Airlines. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.47% lower within the past month. Southwest Airlines currently has a Zacks Rank of #3 (Hold).
Investors should also note Southwest Airlines's current valuation metrics, including its Forward P/E ratio of 14.89. This valuation marks a premium compared to its industry's average Forward P/E of 12.44.
Investors should also note that LUV has a PEG ratio of 2.48 right now. 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Southwest Airlines (LUV) Dips More Than Broader Markets: What You Should Know
Southwest Airlines (LUV - Free Report) closed the most recent trading day at $31.41, moving -0.79% from the previous trading session. This move lagged the S&P 500's daily loss of 0.65%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq gained 0.18%.
Coming into today, shares of the airline had lost 18.34% in the past month. In that same time, the Transportation sector lost 14.3%, while the S&P 500 lost 11.07%.
Southwest Airlines will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect Southwest Airlines to post earnings of $0.43 per share. This would mark year-over-year growth of 286.96%. Our most recent consensus estimate is calling for quarterly revenue of $6.22 billion, up 33.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.13 per share and revenue of $24.11 billion. These totals would mark changes of +199.07% and +52.71%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Southwest Airlines. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.47% lower within the past month. Southwest Airlines currently has a Zacks Rank of #3 (Hold).
Investors should also note Southwest Airlines's current valuation metrics, including its Forward P/E ratio of 14.89. This valuation marks a premium compared to its industry's average Forward P/E of 12.44.
Investors should also note that LUV has a PEG ratio of 2.48 right now. 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.