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Southwest Airlines (LUV) Falls More Steeply Than Broader Market: What Investors Need to Know
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Southwest Airlines (LUV - Free Report) closed the most recent trading day at $27.17, moving -0.48% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.06%. On the other hand, the Dow registered a loss of 0.22%, and the technology-centric Nasdaq increased by 0.31%.
Shares of the airline have appreciated by 16.02% over the course of the past month, outperforming the Transportation sector's gain of 8.42% and the S&P 500's gain of 5.1%.
The upcoming earnings release of Southwest Airlines will be of great interest to investors. On that day, Southwest Airlines is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 136.84%. In the meantime, our current consensus estimate forecasts the revenue to be $6.75 billion, indicating a 9.3% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $1.39 per share and a revenue of $25.99 billion, demonstrating changes of +19.83% and +9.12%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Southwest Airlines. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.38% lower. Southwest Airlines is currently a Zacks Rank #3 (Hold).
In terms of valuation, Southwest Airlines is currently trading at a Forward P/E ratio of 19.64. Its industry sports an average Forward P/E of 6.46, so one might conclude that Southwest Airlines is trading at a premium comparatively.
Also, we should mention that LUV has a PEG ratio of 1.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. LUV's industry had an average PEG ratio of 0.29 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Southwest Airlines (LUV) Falls More Steeply Than Broader Market: What Investors Need to Know
Southwest Airlines (LUV - Free Report) closed the most recent trading day at $27.17, moving -0.48% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.06%. On the other hand, the Dow registered a loss of 0.22%, and the technology-centric Nasdaq increased by 0.31%.
Shares of the airline have appreciated by 16.02% over the course of the past month, outperforming the Transportation sector's gain of 8.42% and the S&P 500's gain of 5.1%.
The upcoming earnings release of Southwest Airlines will be of great interest to investors. On that day, Southwest Airlines is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 136.84%. In the meantime, our current consensus estimate forecasts the revenue to be $6.75 billion, indicating a 9.3% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $1.39 per share and a revenue of $25.99 billion, demonstrating changes of +19.83% and +9.12%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Southwest Airlines. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.38% lower. Southwest Airlines is currently a Zacks Rank #3 (Hold).
In terms of valuation, Southwest Airlines is currently trading at a Forward P/E ratio of 19.64. Its industry sports an average Forward P/E of 6.46, so one might conclude that Southwest Airlines is trading at a premium comparatively.
Also, we should mention that LUV has a PEG ratio of 1.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. LUV's industry had an average PEG ratio of 0.29 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.