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Southwest Airlines (LUV) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $55.19, marking a -1% move from the previous day. This move lagged the S&P 500's daily loss of 0.11%.

Heading into today, shares of the airline had lost 7.93% over the past month, lagging the Transportation sector's loss of 2.4% and the S&P 500's gain of 2.23% in that time.

Wall Street will be looking for positivity from LUV as it approaches its next earnings report date. In that report, analysts expect LUV to post earnings of -$0.41 per share. This would mark year-over-year growth of 84.64%. Meanwhile, our latest consensus estimate is calling for revenue of $3.67 billion, up 264.09% from the prior-year quarter.

LUV's full-year Zacks Consensus Estimates are calling for earnings of -$1.29 per share and revenue of $15.12 billion. These results would represent year-over-year changes of +79.26% and +67.1%, respectively.

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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.43% higher. LUV is currently a Zacks Rank #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 232, which puts it in the bottom 9% 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.

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