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Southwest Airlines (LUV) Gains But Lags Market: What You Should Know
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Southwest Airlines (LUV - Free Report) closed at $37.06 in the latest trading session, marking a +1.67% move from the prior day. This change lagged the S&P 500's 1.89% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.
Heading into today, shares of the airline had gained 2.79% over the past month, lagging the Transportation sector's gain of 3.2% and outpacing the S&P 500's gain of 2.3% in that time.
Wall Street will be looking for positivity from Southwest Airlines as it approaches its next earnings report date. This is expected to be January 26, 2023. In that report, analysts expect Southwest Airlines to post earnings of -$0.03 per share. This would mark a year-over-year decline of 121.43%. Our most recent consensus estimate is calling for quarterly revenue of $6.17 billion, up 22.06% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Southwest Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 4.15% lower within the past month. Southwest Airlines is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Southwest Airlines's current valuation metrics, including its Forward P/E ratio of 11.68. For comparison, its industry has an average Forward P/E of 12.89, which means Southwest Airlines is trading at a discount to the group.
Investors should also note that LUV has a PEG ratio of 1.95 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Airline was holding an average PEG ratio of 0.91 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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 (LUV) Gains But Lags Market: What You Should Know
Southwest Airlines (LUV - Free Report) closed at $37.06 in the latest trading session, marking a +1.67% move from the prior day. This change lagged the S&P 500's 1.89% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.
Heading into today, shares of the airline had gained 2.79% over the past month, lagging the Transportation sector's gain of 3.2% and outpacing the S&P 500's gain of 2.3% in that time.
Wall Street will be looking for positivity from Southwest Airlines as it approaches its next earnings report date. This is expected to be January 26, 2023. In that report, analysts expect Southwest Airlines to post earnings of -$0.03 per share. This would mark a year-over-year decline of 121.43%. Our most recent consensus estimate is calling for quarterly revenue of $6.17 billion, up 22.06% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Southwest Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 4.15% lower within the past month. Southwest Airlines is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Southwest Airlines's current valuation metrics, including its Forward P/E ratio of 11.68. For comparison, its industry has an average Forward P/E of 12.89, which means Southwest Airlines is trading at a discount to the group.
Investors should also note that LUV has a PEG ratio of 1.95 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Airline was holding an average PEG ratio of 0.91 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.