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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 $28.94, moving +0.52% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.84%. At the same time, the Dow added 0.96%, and the tech-heavy Nasdaq gained 0.81%.
Coming into today, shares of the airline had lost 12.55% in the past month. In that same time, the Transportation sector lost 5.68%, while the S&P 500 gained 0.19%.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release, which is expected to be October 26, 2023. In that report, analysts expect Southwest Airlines to post earnings of $0.54 per share. This would mark year-over-year growth of 8%. Our most recent consensus estimate is calling for quarterly revenue of $6.68 billion, up 7.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.03 per share and revenue of $26.32 billion. These totals would mark changes of +75% and +10.53%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Southwest Airlines. Recent revisions tend to reflect the latest 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. 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, 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. The Zacks Consensus EPS estimate has moved 4.17% lower within the past month. Southwest Airlines is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that Southwest Airlines has a Forward P/E ratio of 14.19 right now. This valuation marks a premium compared to its industry's average Forward P/E of 8.32.
It is also worth noting that LUV currently has a PEG ratio of 0.58. 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. LUV's industry had an average PEG ratio of 0.35 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% 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) Gains But Lags Market: What You Should Know
Southwest Airlines (LUV - Free Report) closed the most recent trading day at $28.94, moving +0.52% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.84%. At the same time, the Dow added 0.96%, and the tech-heavy Nasdaq gained 0.81%.
Coming into today, shares of the airline had lost 12.55% in the past month. In that same time, the Transportation sector lost 5.68%, while the S&P 500 gained 0.19%.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release, which is expected to be October 26, 2023. In that report, analysts expect Southwest Airlines to post earnings of $0.54 per share. This would mark year-over-year growth of 8%. Our most recent consensus estimate is calling for quarterly revenue of $6.68 billion, up 7.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.03 per share and revenue of $26.32 billion. These totals would mark changes of +75% and +10.53%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Southwest Airlines. Recent revisions tend to reflect the latest 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. 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, 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. The Zacks Consensus EPS estimate has moved 4.17% lower within the past month. Southwest Airlines is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that Southwest Airlines has a Forward P/E ratio of 14.19 right now. This valuation marks a premium compared to its industry's average Forward P/E of 8.32.
It is also worth noting that LUV currently has a PEG ratio of 0.58. 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. LUV's industry had an average PEG ratio of 0.35 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% 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.