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Southwest Airlines (LUV) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest market close, Southwest Airlines (LUV - Free Report) reached $24.37, with a -1.34% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.85%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.96%.
Prior to today's trading, shares of the airline had lost 13.39% over the past month. This has lagged the Transportation sector's loss of 5.76% and the S&P 500's loss of 3.02% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Southwest Airlines in its upcoming earnings disclosure. The company's earnings report is set to go public on October 26, 2023. The company's upcoming EPS is projected at $0.40, signifying a 20% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.58 billion, indicating a 5.73% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.70 per share and revenue of $26.12 billion. These totals would mark changes of +46.55% and +9.7%, respectively, from last year.
Any recent changes to analyst estimates for Southwest Airlines should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 13.3% downward. Southwest Airlines is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, Southwest Airlines currently has a Forward P/E ratio of 14.51. Its industry sports an average Forward P/E of 6.71, so one might conclude that Southwest Airlines is trading at a premium comparatively.
Meanwhile, LUV's PEG ratio is currently 0.73. 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 had an average PEG ratio of 0.34 as trading concluded yesterday.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 234, putting it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Southwest Airlines (LUV) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest market close, Southwest Airlines (LUV - Free Report) reached $24.37, with a -1.34% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.85%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.96%.
Prior to today's trading, shares of the airline had lost 13.39% over the past month. This has lagged the Transportation sector's loss of 5.76% and the S&P 500's loss of 3.02% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Southwest Airlines in its upcoming earnings disclosure. The company's earnings report is set to go public on October 26, 2023. The company's upcoming EPS is projected at $0.40, signifying a 20% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.58 billion, indicating a 5.73% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.70 per share and revenue of $26.12 billion. These totals would mark changes of +46.55% and +9.7%, respectively, from last year.
Any recent changes to analyst estimates for Southwest Airlines should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 13.3% downward. Southwest Airlines is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, Southwest Airlines currently has a Forward P/E ratio of 14.51. Its industry sports an average Forward P/E of 6.71, so one might conclude that Southwest Airlines is trading at a premium comparatively.
Meanwhile, LUV's PEG ratio is currently 0.73. 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 had an average PEG ratio of 0.34 as trading concluded yesterday.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 234, putting it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.