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Southwest Airlines (LUV) Stock Sinks As Market Gains: What You Should Know
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Southwest Airlines (LUV - Free Report) closed at $32.21 in the latest trading session, marking a -0.09% move from the prior day. This change lagged the S&P 500's 1.33% gain on the day. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 2.94%.
Prior to today's trading, shares of the airline had gained 8.44% over the past month. This has outpaced the Transportation sector's gain of 0.85% and the S&P 500's gain of 6.11% in that time.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release, which is expected to be April 27, 2023. In that report, analysts expect Southwest Airlines to post earnings of -$0.21 per share. This would mark year-over-year growth of 34.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.74 billion, up 22.28% from the year-ago period.
LUV's full-year Zacks Consensus Estimates are calling for earnings of $2.68 per share and revenue of $27.11 billion. These results would represent year-over-year changes of +131.03% and +13.83%, respectively.
Any recent changes to analyst estimates for Southwest Airlines should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.56% lower within the past month. Southwest Airlines currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Southwest Airlines has a Forward P/E ratio of 12.03 right now. Its industry sports an average Forward P/E of 11.2, so we one might conclude that Southwest Airlines is trading at a premium comparatively.
Meanwhile, LUV's PEG ratio is currently 0.38. 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. The Transportation - Airline was holding an average PEG ratio of 0.33 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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) Stock Sinks As Market Gains: What You Should Know
Southwest Airlines (LUV - Free Report) closed at $32.21 in the latest trading session, marking a -0.09% move from the prior day. This change lagged the S&P 500's 1.33% gain on the day. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 2.94%.
Prior to today's trading, shares of the airline had gained 8.44% over the past month. This has outpaced the Transportation sector's gain of 0.85% and the S&P 500's gain of 6.11% in that time.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release, which is expected to be April 27, 2023. In that report, analysts expect Southwest Airlines to post earnings of -$0.21 per share. This would mark year-over-year growth of 34.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.74 billion, up 22.28% from the year-ago period.
LUV's full-year Zacks Consensus Estimates are calling for earnings of $2.68 per share and revenue of $27.11 billion. These results would represent year-over-year changes of +131.03% and +13.83%, respectively.
Any recent changes to analyst estimates for Southwest Airlines should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.56% lower within the past month. Southwest Airlines currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Southwest Airlines has a Forward P/E ratio of 12.03 right now. Its industry sports an average Forward P/E of 11.2, so we one might conclude that Southwest Airlines is trading at a premium comparatively.
Meanwhile, LUV's PEG ratio is currently 0.38. 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. The Transportation - Airline was holding an average PEG ratio of 0.33 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.