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Southwest Airlines (LUV) Gains But Lags Market: What You Should Know
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In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $49.54, marking a +0.79% move from the previous day. This change lagged the S&P 500's 1.09% gain on the day. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq gained 2.01%.
Prior to today's trading, shares of the airline had lost 19.66% over the past month. This has lagged the Transportation sector's loss of 10.04% and the S&P 500's loss of 7.81% in that time.
Investors will be hoping for strength from LUV as it approaches its next earnings release, which is expected to be January 24, 2019. In that report, analysts expect LUV to post earnings of $1.03 per share. This would mark year-over-year growth of 33.77%. Our most recent consensus estimate is calling for quarterly revenue of $5.68 billion, up 7.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.11 per share and revenue of $21.95 billion, which would represent changes of +17.43% and +3.67%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for LUV. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 1.97% lower. LUV currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that LUV has a Forward P/E ratio of 11.95 right now. For comparison, its industry has an average Forward P/E of 12.46, which means LUV is trading at a discount to the group.
It is also worth noting that LUV currently has a PEG ratio of 1.07. 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 0.64 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 19% 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
In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $49.54, marking a +0.79% move from the previous day. This change lagged the S&P 500's 1.09% gain on the day. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq gained 2.01%.
Prior to today's trading, shares of the airline had lost 19.66% over the past month. This has lagged the Transportation sector's loss of 10.04% and the S&P 500's loss of 7.81% in that time.
Investors will be hoping for strength from LUV as it approaches its next earnings release, which is expected to be January 24, 2019. In that report, analysts expect LUV to post earnings of $1.03 per share. This would mark year-over-year growth of 33.77%. Our most recent consensus estimate is calling for quarterly revenue of $5.68 billion, up 7.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.11 per share and revenue of $21.95 billion, which would represent changes of +17.43% and +3.67%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for LUV. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 1.97% lower. LUV currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that LUV has a Forward P/E ratio of 11.95 right now. For comparison, its industry has an average Forward P/E of 12.46, which means LUV is trading at a discount to the group.
It is also worth noting that LUV currently has a PEG ratio of 1.07. 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 0.64 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 19% 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.