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Southwest Airlines (LUV) Gains But Lags Market: What You Should Know
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Southwest Airlines (LUV - Free Report) closed at $34.18 in the latest trading session, marking a +0.77% move from the prior day. The stock lagged the S&P 500's daily gain of 1.62%. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 12.91%.
Coming into today, shares of the airline had lost 7.88% in the past month. In that same time, the Transportation sector lost 0.89%, while the S&P 500 lost 4.54%.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release. The company is expected to report EPS of -$0.15, up 53.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.76 billion, up 22.61% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.71 per share and revenue of $27.17 billion, which would represent changes of +133.62% and +14.1%, respectively, from the prior year.
Any recent changes to analyst estimates for Southwest Airlines should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 1.96% lower within the past month. Southwest Airlines is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, Southwest Airlines is currently trading at a Forward P/E ratio of 12.51. This valuation marks a discount compared to its industry's average Forward P/E of 12.89.
We can also see that LUV currently has a PEG ratio of 0.48. 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. The Transportation - Airline industry currently had an average PEG ratio of 0.56 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Southwest Airlines (LUV) Gains But Lags Market: What You Should Know
Southwest Airlines (LUV - Free Report) closed at $34.18 in the latest trading session, marking a +0.77% move from the prior day. The stock lagged the S&P 500's daily gain of 1.62%. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 12.91%.
Coming into today, shares of the airline had lost 7.88% in the past month. In that same time, the Transportation sector lost 0.89%, while the S&P 500 lost 4.54%.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release. The company is expected to report EPS of -$0.15, up 53.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.76 billion, up 22.61% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.71 per share and revenue of $27.17 billion, which would represent changes of +133.62% and +14.1%, respectively, from the prior year.
Any recent changes to analyst estimates for Southwest Airlines should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 1.96% lower within the past month. Southwest Airlines is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, Southwest Airlines is currently trading at a Forward P/E ratio of 12.51. This valuation marks a discount compared to its industry's average Forward P/E of 12.89.
We can also see that LUV currently has a PEG ratio of 0.48. 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. The Transportation - Airline industry currently had an average PEG ratio of 0.56 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.