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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 $33.97 in the latest trading session, marking a +1.19% move from the prior day. The stock lagged the S&P 500's daily gain of 1.22%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 4.63%.
Prior to today's trading, shares of the airline had gained 12.35% over the past month. This has outpaced the Transportation sector's gain of 4.25% and the S&P 500's gain of 6.22% 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 July 27, 2023. The company is expected to report EPS of $1, down 23.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.97 billion, up 3.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.62 per share and revenue of $26.73 billion. These totals would mark changes of +125.86% and +12.25%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Southwest Airlines. 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. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.19% lower. Southwest Airlines is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Southwest Airlines has a Forward P/E ratio of 12.84 right now. Its industry sports an average Forward P/E of 10.39, so we one might conclude that Southwest Airlines is trading at a premium comparatively.
Investors should also note that LUV has a PEG ratio of 0.41 right now. 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 group has a Zacks Industry Rank of 54, putting it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Southwest Airlines (LUV) Gains But Lags Market: What You Should Know
Southwest Airlines (LUV - Free Report) closed at $33.97 in the latest trading session, marking a +1.19% move from the prior day. The stock lagged the S&P 500's daily gain of 1.22%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 4.63%.
Prior to today's trading, shares of the airline had gained 12.35% over the past month. This has outpaced the Transportation sector's gain of 4.25% and the S&P 500's gain of 6.22% 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 July 27, 2023. The company is expected to report EPS of $1, down 23.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.97 billion, up 3.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.62 per share and revenue of $26.73 billion. These totals would mark changes of +125.86% and +12.25%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Southwest Airlines. 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. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.19% lower. Southwest Airlines is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Southwest Airlines has a Forward P/E ratio of 12.84 right now. Its industry sports an average Forward P/E of 10.39, so we one might conclude that Southwest Airlines is trading at a premium comparatively.
Investors should also note that LUV has a PEG ratio of 0.41 right now. 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 group has a Zacks Industry Rank of 54, putting it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.