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Southwest Airlines (LUV) Dips More Than Broader Markets: What You Should Know
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Southwest Airlines (LUV - Free Report) closed the most recent trading day at $42.78, moving -1.06% from the previous trading session. This change lagged the S&P 500's 0.04% loss on the day. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Coming into today, shares of the airline had lost 5.96% in the past month. In that same time, the Transportation sector gained 3.04%, while the S&P 500 gained 2.67%.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release, which is expected to be April 28, 2022. The company is expected to report EPS of -$0.57, up 66.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.51 billion, up 119.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.08 per share and revenue of $21.49 billion. These totals would mark changes of +150.23% and +36.09%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Southwest Airlines. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 5.68% lower within the past month. Southwest Airlines is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Southwest Airlines's current valuation metrics, including its Forward P/E ratio of 40.07. For comparison, its industry has an average Forward P/E of 21.22, which means Southwest Airlines is trading at a premium to the group.
Meanwhile, LUV's PEG ratio is currently 6.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 6.68 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 230, which puts it in the bottom 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Southwest Airlines (LUV) Dips More Than Broader Markets: What You Should Know
Southwest Airlines (LUV - Free Report) closed the most recent trading day at $42.78, moving -1.06% from the previous trading session. This change lagged the S&P 500's 0.04% loss on the day. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Coming into today, shares of the airline had lost 5.96% in the past month. In that same time, the Transportation sector gained 3.04%, while the S&P 500 gained 2.67%.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release, which is expected to be April 28, 2022. The company is expected to report EPS of -$0.57, up 66.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.51 billion, up 119.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.08 per share and revenue of $21.49 billion. These totals would mark changes of +150.23% and +36.09%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Southwest Airlines. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 5.68% lower within the past month. Southwest Airlines is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Southwest Airlines's current valuation metrics, including its Forward P/E ratio of 40.07. For comparison, its industry has an average Forward P/E of 21.22, which means Southwest Airlines is trading at a premium to the group.
Meanwhile, LUV's PEG ratio is currently 6.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 6.68 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 230, which puts it in the bottom 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.