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Southwest Airlines (LUV) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $29.52, marking a +1.9% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.
Prior to today's trading, shares of the airline had gained 15.28% over the past month. This has outpaced the Transportation sector's gain of 8.79% and the S&P 500's gain of 5.16% in that time.
The upcoming earnings release of Southwest Airlines will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.14, reflecting a 136.84% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.75 billion, reflecting a 9.33% rise from the equivalent quarter last 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 +9.13%, respectively, from the preceding year.
Any recent changes to analyst estimates for Southwest Airlines should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there's been a 0.85% rise in the Zacks Consensus EPS estimate. Currently, Southwest Airlines is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Southwest Airlines is currently exchanging hands at a Forward P/E ratio of 20.89. This expresses a premium compared to the average Forward P/E of 7.58 of its industry.
Meanwhile, LUV's PEG ratio is currently 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LUV's industry had an average PEG ratio of 0.31 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 189, this industry ranks in the bottom 25% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow LUV in the coming trading sessions, be sure to utilize Zacks.com.
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Southwest Airlines (LUV) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $29.52, marking a +1.9% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.
Prior to today's trading, shares of the airline had gained 15.28% over the past month. This has outpaced the Transportation sector's gain of 8.79% and the S&P 500's gain of 5.16% in that time.
The upcoming earnings release of Southwest Airlines will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.14, reflecting a 136.84% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.75 billion, reflecting a 9.33% rise from the equivalent quarter last 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 +9.13%, respectively, from the preceding year.
Any recent changes to analyst estimates for Southwest Airlines should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there's been a 0.85% rise in the Zacks Consensus EPS estimate. Currently, Southwest Airlines is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Southwest Airlines is currently exchanging hands at a Forward P/E ratio of 20.89. This expresses a premium compared to the average Forward P/E of 7.58 of its industry.
Meanwhile, LUV's PEG ratio is currently 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LUV's industry had an average PEG ratio of 0.31 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 189, this industry ranks in the bottom 25% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow LUV in the coming trading sessions, be sure to utilize Zacks.com.