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Southwest Airlines (LUV) Gains As Market Dips: What You Should Know

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Southwest Airlines (LUV - Free Report) closed at $53.05 in the latest trading session, marking a +0.17% move from the prior day. This change outpaced the S&P 500's 2.04% loss on the day.

Prior to today's trading, shares of the airline had gained 7.71% over the past month. This has outpaced the Transportation sector's loss of 1.87% and the S&P 500's loss of 1.36% in that time.

Investors will be hoping for strength from LUV as it approaches its next earnings release. The company is expected to report EPS of -$0.23, up 88.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.61 billion, up 156.96% from the year-ago period.

LUV's full-year Zacks Consensus Estimates are calling for earnings of -$1.95 per share and revenue of $15.64 billion. These results would represent year-over-year changes of +68.65% and +72.8%, respectively.

Any recent changes to analyst estimates for LUV should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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, 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 24.58% lower. LUV is currently sporting a Zacks Rank of #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 26% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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