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Southwest Airlines (LUV) Stock Slides as Market Rises: Facts to Know Before You Trade
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Southwest Airlines (LUV - Free Report) ended the recent trading session at $29.12, demonstrating a -0.1% swing from the preceding day's closing price. This change lagged the S&P 500's 1.41% gain on the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 2.2%.
Heading into today, shares of the airline had gained 0.28% over the past month, lagging the Transportation sector's gain of 4.07% and the S&P 500's gain of 2.9% in that time.
The investment community will be closely monitoring the performance of Southwest Airlines in its forthcoming earnings report. The company is scheduled to release its earnings on January 25, 2024. The company is expected to report EPS of $0.14, up 136.84% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.75 billion, up 9.34% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Southwest Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% upward. As of now, Southwest Airlines holds a Zacks Rank of #3 (Hold).
In terms of valuation, Southwest Airlines is presently being traded at a Forward P/E ratio of 16.82. This expresses a premium compared to the average Forward P/E of 8.22 of its industry.
It's also important to note that LUV currently trades at a PEG ratio of 1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Transportation - Airline industry had an average PEG ratio of 0.31 as trading concluded yesterday.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 39% of all industries, numbering over 250.
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 Slides as Market Rises: Facts to Know Before You Trade
Southwest Airlines (LUV - Free Report) ended the recent trading session at $29.12, demonstrating a -0.1% swing from the preceding day's closing price. This change lagged the S&P 500's 1.41% gain on the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 2.2%.
Heading into today, shares of the airline had gained 0.28% over the past month, lagging the Transportation sector's gain of 4.07% and the S&P 500's gain of 2.9% in that time.
The investment community will be closely monitoring the performance of Southwest Airlines in its forthcoming earnings report. The company is scheduled to release its earnings on January 25, 2024. The company is expected to report EPS of $0.14, up 136.84% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.75 billion, up 9.34% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Southwest Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% upward. As of now, Southwest Airlines holds a Zacks Rank of #3 (Hold).
In terms of valuation, Southwest Airlines is presently being traded at a Forward P/E ratio of 16.82. This expresses a premium compared to the average Forward P/E of 8.22 of its industry.
It's also important to note that LUV currently trades at a PEG ratio of 1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Transportation - Airline industry had an average PEG ratio of 0.31 as trading concluded yesterday.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 39% of all industries, numbering over 250.
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.