We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Southwest Airlines (LUV) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $29.43, marking a -1.8% move from the previous day. This move lagged the S&P 500's daily loss of 0.32%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.89%.
Coming into today, shares of the airline had lost 10.88% in the past month. In that same time, the Transportation sector lost 5.14%, while the S&P 500 lost 0.12%.
Wall Street will be looking for positivity from Southwest Airlines as it approaches its next earnings report date. On that day, Southwest Airlines is projected to report earnings of $0.58 per share, which would represent year-over-year growth of 16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.69 billion, up 7.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.07 per share and revenue of $26.33 billion, which would represent changes of +78.45% and +10.58%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Southwest Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.93% lower. Southwest Airlines is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that Southwest Airlines has a Forward P/E ratio of 14.49 right now. This valuation marks a premium compared to its industry's average Forward P/E of 8.6.
It is also worth noting that LUV currently has a PEG ratio of 0.6. 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.33 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Southwest Airlines (LUV) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $29.43, marking a -1.8% move from the previous day. This move lagged the S&P 500's daily loss of 0.32%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.89%.
Coming into today, shares of the airline had lost 10.88% in the past month. In that same time, the Transportation sector lost 5.14%, while the S&P 500 lost 0.12%.
Wall Street will be looking for positivity from Southwest Airlines as it approaches its next earnings report date. On that day, Southwest Airlines is projected to report earnings of $0.58 per share, which would represent year-over-year growth of 16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.69 billion, up 7.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.07 per share and revenue of $26.33 billion, which would represent changes of +78.45% and +10.58%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Southwest Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.93% lower. Southwest Airlines is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that Southwest Airlines has a Forward P/E ratio of 14.49 right now. This valuation marks a premium compared to its industry's average Forward P/E of 8.6.
It is also worth noting that LUV currently has a PEG ratio of 0.6. 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.33 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.