In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $38.94, marking a -0.71% move from the previous day. This change was narrower than the S&P 500's 1.76% loss on the day. At the same time, the Dow lost 1.45%, and the tech-heavy Nasdaq lost 1.99%.
Coming into today, shares of the airline had gained 11.26% in the past month. In that same time, the Transportation sector gained 6.33%, while the S&P 500 gained 1.56%.
LUV will be looking to display strength as it nears its next earnings release. In that report, analysts expect LUV to post earnings of -$2.50 per share. This would mark a year-over-year decline of 303.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.64 billion, down 71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$6.39 per share and revenue of $9.66 billion. These totals would mark changes of -249.65% and -56.94%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for LUV. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.7% lower. LUV currently has a Zacks Rank of #4 (Sell).
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 239, which puts it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.