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Southwest Airlines (LUV) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $45.83, marking a +1.3% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.92%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.
Heading into today, shares of the airline had gained 11.76% over the past month, outpacing the Transportation sector's gain of 1.72% and the S&P 500's loss of 0.85% in that time.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release. The company is expected to report EPS of $0.06, up 104.65% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.99 billion, up 147.95% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Southwest Airlines. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 2.4% higher. Southwest Airlines is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Southwest Airlines's current valuation metrics, including its Forward P/E ratio of 23.58. For comparison, its industry has an average Forward P/E of 21.79, which means Southwest Airlines is trading at a premium to the group.
Meanwhile, LUV's PEG ratio is currently 3.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Transportation - Airline stocks are, on average, holding a PEG ratio of 1.01 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 246, which puts it in the bottom 4% 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.
To follow LUV in the coming trading sessions, be sure to utilize Zacks.com.
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Southwest Airlines (LUV) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $45.83, marking a +1.3% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.92%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.
Heading into today, shares of the airline had gained 11.76% over the past month, outpacing the Transportation sector's gain of 1.72% and the S&P 500's loss of 0.85% in that time.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release. The company is expected to report EPS of $0.06, up 104.65% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.99 billion, up 147.95% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Southwest Airlines. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 2.4% higher. Southwest Airlines is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Southwest Airlines's current valuation metrics, including its Forward P/E ratio of 23.58. For comparison, its industry has an average Forward P/E of 21.79, which means Southwest Airlines is trading at a premium to the group.
Meanwhile, LUV's PEG ratio is currently 3.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Transportation - Airline stocks are, on average, holding a PEG ratio of 1.01 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 246, which puts it in the bottom 4% 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.
To follow LUV in the coming trading sessions, be sure to utilize Zacks.com.