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Southwest Airlines (LUV) Outpaces Stock Market Gains: What You Should Know

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Southwest Airlines (LUV - Free Report) closed at $53.09 in the latest trading session, marking a +0.32% move from the prior day. This move outpaced the S&P 500's daily gain of 0.13%.

Coming into today, shares of the airline had lost 13.74% in the past month. In that same time, the Transportation sector lost 5.79%, while the S&P 500 gained 2.16%.

Wall Street will be looking for positivity from LUV as it approaches its next earnings report date. This is expected to be July 22, 2021. The company is expected to report EPS of -$0.41, up 84.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.67 billion, up 264.09% from the year-ago period.

LUV's full-year Zacks Consensus Estimates are calling for earnings of -$1.29 per share and revenue of $15.23 billion. These results would represent year-over-year changes of +79.26% and +68.32%, respectively.

It is also important to note the recent changes to analyst estimates for LUV. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 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 3.43% higher. LUV is currently sporting a Zacks Rank of #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 227, which puts it in the bottom 11% 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.

To follow LUV in the coming trading sessions, be sure to utilize Zacks.com.


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