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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 the most recent trading day at $36.21, moving +0.72% from the previous trading session. This change lagged the S&P 500's 1.23% gain on the day. At the same time, the Dow added 0.84%, and the tech-heavy Nasdaq lost 2.24%.
Heading into today, shares of the airline had gained 23.5% over the past month, outpacing the Transportation sector's gain of 7.67% and the S&P 500's gain of 4.67% in that time.
Southwest Airlines will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2023. The company is expected to report EPS of $1.03, down 20.77% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.96 billion, up 3.48% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.67 per share and revenue of $26.67 billion, which would represent changes of +130.17% and +11.99%, respectively, from the prior year.
Any recent changes to analyst estimates for Southwest Airlines should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.92% higher. 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 13.49. This valuation marks a premium compared to its industry's average Forward P/E of 11.75.
Also, we should mention that LUV has a PEG ratio of 0.42. 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.29 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 44, putting 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Southwest Airlines (LUV) Gains But Lags Market: What You Should Know
Southwest Airlines (LUV - Free Report) closed the most recent trading day at $36.21, moving +0.72% from the previous trading session. This change lagged the S&P 500's 1.23% gain on the day. At the same time, the Dow added 0.84%, and the tech-heavy Nasdaq lost 2.24%.
Heading into today, shares of the airline had gained 23.5% over the past month, outpacing the Transportation sector's gain of 7.67% and the S&P 500's gain of 4.67% in that time.
Southwest Airlines will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2023. The company is expected to report EPS of $1.03, down 20.77% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.96 billion, up 3.48% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.67 per share and revenue of $26.67 billion, which would represent changes of +130.17% and +11.99%, respectively, from the prior year.
Any recent changes to analyst estimates for Southwest Airlines should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.92% higher. 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 13.49. This valuation marks a premium compared to its industry's average Forward P/E of 11.75.
Also, we should mention that LUV has a PEG ratio of 0.42. 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.29 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 44, putting 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.
You can find more information on all of these metrics, and much more, on Zacks.com.