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Southwest Airlines (LUV) Stock Sinks As Market Gains: What You Should Know
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Southwest Airlines (LUV - Free Report) closed the most recent trading day at $28.79, moving -1.67% from the previous trading session. This change lagged the S&P 500's 0.12% gain on the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.29%.
Prior to today's trading, shares of the airline had lost 11.59% over the past month. This has lagged the Transportation sector's loss of 5.6% and the S&P 500's gain of 0.09% 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 October 26, 2023. On that day, Southwest Airlines is projected to report earnings of $0.54 per share, which would represent year-over-year growth of 8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.68 billion, up 7.41% from the year-ago period.
LUV's full-year Zacks Consensus Estimates are calling for earnings of $2.03 per share and revenue of $26.32 billion. These results would represent year-over-year changes of +75% and +10.53%, respectively.
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 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.17% lower. Southwest Airlines is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, Southwest Airlines currently has a Forward P/E ratio of 14.43. This valuation marks a premium compared to its industry's average Forward P/E of 8.58.
It is also worth noting that LUV currently has a PEG ratio of 0.59. 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. The Transportation - Airline industry currently had an average PEG ratio of 0.35 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 42% 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.
To follow LUV in the coming trading sessions, be sure to utilize Zacks.com.
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Southwest Airlines (LUV) Stock Sinks As Market Gains: What You Should Know
Southwest Airlines (LUV - Free Report) closed the most recent trading day at $28.79, moving -1.67% from the previous trading session. This change lagged the S&P 500's 0.12% gain on the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.29%.
Prior to today's trading, shares of the airline had lost 11.59% over the past month. This has lagged the Transportation sector's loss of 5.6% and the S&P 500's gain of 0.09% 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 October 26, 2023. On that day, Southwest Airlines is projected to report earnings of $0.54 per share, which would represent year-over-year growth of 8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.68 billion, up 7.41% from the year-ago period.
LUV's full-year Zacks Consensus Estimates are calling for earnings of $2.03 per share and revenue of $26.32 billion. These results would represent year-over-year changes of +75% and +10.53%, respectively.
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 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.17% lower. Southwest Airlines is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, Southwest Airlines currently has a Forward P/E ratio of 14.43. This valuation marks a premium compared to its industry's average Forward P/E of 8.58.
It is also worth noting that LUV currently has a PEG ratio of 0.59. 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. The Transportation - Airline industry currently had an average PEG ratio of 0.35 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 42% 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.
To follow LUV in the coming trading sessions, be sure to utilize Zacks.com.