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Southwest Airlines (LUV) Gains But Lags Market: What You Should Know

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Southwest Airlines (LUV - Free Report) closed the most recent trading day at $61.30, moving +0.39% from the previous trading session. This move lagged the S&P 500's daily gain of 1.18%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 1.76%.

Heading into today, shares of the airline had gained 5.6% over the past month, lagging the Transportation sector's gain of 6.7% and outpacing the S&P 500's gain of 4.55% in that time.

Wall Street will be looking for positivity from LUV as it approaches its next earnings report date. This is expected to be April 22, 2021. The company is expected to report EPS of -$1.75, down 1066.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.98 billion, down 53.15% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.86 per share and revenue of $14.01 billion, which would represent changes of +70.1% and +54.84%, 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.

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. The Zacks Consensus EPS estimate has moved 3.57% lower within the past month. LUV is holding a Zacks Rank of #3 (Hold) right now.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 13% of all 250+ industries.

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.

Be sure to follow all of these stock-moving metrics, and many more, on

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