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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 $31.42 in the latest trading session, marking a -0.57% move from the prior day. This change lagged the S&P 500's 0.18% gain on the day. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.02%.
Coming into today, shares of the airline had lost 2.05% in the past month. In that same time, the Transportation sector lost 5.86%, while the S&P 500 lost 1.63%.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release. In that report, analysts expect Southwest Airlines to post earnings of $0.58 per share. This would mark year-over-year growth of 16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.69 billion, up 7.59% from the year-ago period.
LUV's full-year Zacks Consensus Estimates are calling for earnings of $2.10 per share and revenue of $26.33 billion. These results would represent year-over-year changes of +81.03% and +10.58%, respectively.
Investors might also notice 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.35% lower. 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 15.06. This valuation marks a premium compared to its industry's average Forward P/E of 8.74.
Meanwhile, LUV's PEG ratio is currently 0.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LUV's industry had an average PEG ratio of 0.37 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Southwest Airlines (LUV) Stock Sinks As Market Gains: What You Should Know
Southwest Airlines (LUV - Free Report) closed at $31.42 in the latest trading session, marking a -0.57% move from the prior day. This change lagged the S&P 500's 0.18% gain on the day. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.02%.
Coming into today, shares of the airline had lost 2.05% in the past month. In that same time, the Transportation sector lost 5.86%, while the S&P 500 lost 1.63%.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release. In that report, analysts expect Southwest Airlines to post earnings of $0.58 per share. This would mark year-over-year growth of 16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.69 billion, up 7.59% from the year-ago period.
LUV's full-year Zacks Consensus Estimates are calling for earnings of $2.10 per share and revenue of $26.33 billion. These results would represent year-over-year changes of +81.03% and +10.58%, respectively.
Investors might also notice 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.35% lower. 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 15.06. This valuation marks a premium compared to its industry's average Forward P/E of 8.74.
Meanwhile, LUV's PEG ratio is currently 0.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LUV's industry had an average PEG ratio of 0.37 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.