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Southwest Airlines (LUV) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $31.58, marking a -0.44% move from the previous day. This change lagged the S&P 500's 0.25% loss on the day. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq lost 1.88%.
Prior to today's trading, shares of the airline had lost 4.94% over the past month. This has lagged the Transportation sector's loss of 4.77% and the S&P 500's gain of 1.48% 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 April 27, 2023. On that day, Southwest Airlines is projected to report earnings of -$0.21 per share, which would represent year-over-year growth of 34.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.74 billion, up 22.2% from the year-ago period.
LUV's full-year Zacks Consensus Estimates are calling for earnings of $2.65 per share and revenue of $27.11 billion. These results would represent year-over-year changes of +128.45% and +13.84%, respectively.
It is also important to note the recent changes to analyst estimates for Southwest Airlines. These revisions help to show the ever-changing nature of 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.
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. The Zacks Consensus EPS estimate has moved 2.34% lower within the past month. Southwest Airlines is currently a Zacks Rank #3 (Hold).
Investors should also note Southwest Airlines's current valuation metrics, including its Forward P/E ratio of 11.98. For comparison, its industry has an average Forward P/E of 11.44, which means Southwest Airlines is trading at a premium to the group.
Investors should also note that LUV has a PEG ratio of 0.45 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LUV's industry had an average PEG ratio of 0.37 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $31.58, marking a -0.44% move from the previous day. This change lagged the S&P 500's 0.25% loss on the day. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq lost 1.88%.
Prior to today's trading, shares of the airline had lost 4.94% over the past month. This has lagged the Transportation sector's loss of 4.77% and the S&P 500's gain of 1.48% 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 April 27, 2023. On that day, Southwest Airlines is projected to report earnings of -$0.21 per share, which would represent year-over-year growth of 34.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.74 billion, up 22.2% from the year-ago period.
LUV's full-year Zacks Consensus Estimates are calling for earnings of $2.65 per share and revenue of $27.11 billion. These results would represent year-over-year changes of +128.45% and +13.84%, respectively.
It is also important to note the recent changes to analyst estimates for Southwest Airlines. These revisions help to show the ever-changing nature of 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.
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. The Zacks Consensus EPS estimate has moved 2.34% lower within the past month. Southwest Airlines is currently a Zacks Rank #3 (Hold).
Investors should also note Southwest Airlines's current valuation metrics, including its Forward P/E ratio of 11.98. For comparison, its industry has an average Forward P/E of 11.44, which means Southwest Airlines is trading at a premium to the group.
Investors should also note that LUV has a PEG ratio of 0.45 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LUV's industry had an average PEG ratio of 0.37 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.