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Southwest Airlines (LUV) Stock Sinks As Market Gains: What You Should Know
Southwest Airlines (LUV - Free Report) closed at $29.62 in the latest trading session, marking a -1.53% move from the prior day. This change lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.34%.
Heading into today, shares of the airline had lost 10.48% over the past month, lagging the Transportation sector's loss of 2.26% and the S&P 500's loss of 1.21% in that time.
Wall Street will be looking for positivity from Southwest Airlines as it approaches its next earnings report date. This is expected to be April 27, 2023. The company is expected to report EPS of -$0.17, up 46.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.74 billion, up 22.38% from the year-ago period.
LUV's full-year Zacks Consensus Estimates are calling for earnings of $2.68 per share and revenue of $27.23 billion. These results would represent year-over-year changes of +131.03% and +14.34%, respectively.
Investors should also note any recent changes to analyst estimates for Southwest Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. The Zacks Consensus EPS estimate has moved 1.32% lower within the past month. Southwest Airlines is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Southwest Airlines is holding a Forward P/E ratio of 11.24. This represents a no noticeable deviation compared to its industry's average Forward P/E of 11.24.
Meanwhile, LUV's PEG ratio is currently 0.43. 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. LUV's industry had an average PEG ratio of 0.35 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% 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.
To follow LUV in the coming trading sessions, be sure to utilize Zacks.com.