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Southwest Airlines (LUV) Gains As Market Dips: What You Should Know
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Southwest Airlines (LUV - Free Report) closed at $37.59 in the latest trading session, marking a +1.32% move from the prior day. This change outpaced the S&P 500's 0.29% loss on the day. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, added 1.24%.
Prior to today's trading, shares of the airline had gained 21.28% over the past month. This has outpaced the Transportation sector's gain of 6.51% and the S&P 500's gain of 3.1% in that time.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release, which is expected to be July 27, 2023. On that day, Southwest Airlines is projected to report earnings of $1.03 per share, which would represent a year-over-year decline of 20.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.96 billion, up 3.48% from the year-ago period.
LUV's full-year Zacks Consensus Estimates are calling for earnings of $2.64 per share and revenue of $26.66 billion. These results would represent year-over-year changes of +127.59% and +11.97%, respectively.
Investors should also note any recent changes to analyst estimates for Southwest Airlines. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. Southwest Airlines currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Southwest Airlines is holding a Forward P/E ratio of 14.06. This valuation marks a premium compared to its industry's average Forward P/E of 11.54.
Investors should also note that LUV has a PEG ratio of 0.44 right now. 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 0.28 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Southwest Airlines (LUV) Gains As Market Dips: What You Should Know
Southwest Airlines (LUV - Free Report) closed at $37.59 in the latest trading session, marking a +1.32% move from the prior day. This change outpaced the S&P 500's 0.29% loss on the day. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, added 1.24%.
Prior to today's trading, shares of the airline had gained 21.28% over the past month. This has outpaced the Transportation sector's gain of 6.51% and the S&P 500's gain of 3.1% in that time.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release, which is expected to be July 27, 2023. On that day, Southwest Airlines is projected to report earnings of $1.03 per share, which would represent a year-over-year decline of 20.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.96 billion, up 3.48% from the year-ago period.
LUV's full-year Zacks Consensus Estimates are calling for earnings of $2.64 per share and revenue of $26.66 billion. These results would represent year-over-year changes of +127.59% and +11.97%, respectively.
Investors should also note any recent changes to analyst estimates for Southwest Airlines. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. Southwest Airlines currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Southwest Airlines is holding a Forward P/E ratio of 14.06. This valuation marks a premium compared to its industry's average Forward P/E of 11.54.
Investors should also note that LUV has a PEG ratio of 0.44 right now. 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 0.28 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.