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Why the Market Dipped But Southwest Airlines (LUV) Gained Today
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The most recent trading session ended with Southwest Airlines (LUV - Free Report) standing at $28.72, reflecting a +0.53% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 0.37%. Elsewhere, the Dow saw a downswing of 0.62%, while the tech-heavy Nasdaq depreciated by 0.19%.
Shares of the airline witnessed a loss of 1.38% over the previous month, beating the performance of the Transportation sector with its loss of 2.95% and underperforming the S&P 500's gain of 1.56%.
The investment community will be paying close attention to the earnings performance of Southwest Airlines in its upcoming release. The company is slated to reveal its earnings on January 25, 2024. The company's upcoming EPS is projected at $0.14, signifying a 136.84% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.74 billion, up 9.13% from the year-ago period.
Investors should also pay attention to any latest changes in analyst estimates for Southwest Airlines. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.6% lower. Currently, Southwest Airlines is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Southwest Airlines has a Forward P/E ratio of 16.79 right now. This expresses a premium compared to the average Forward P/E of 8.53 of its industry.
Meanwhile, LUV's PEG ratio is currently 0.93. 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 0.43 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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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Why the Market Dipped But Southwest Airlines (LUV) Gained Today
The most recent trading session ended with Southwest Airlines (LUV - Free Report) standing at $28.72, reflecting a +0.53% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 0.37%. Elsewhere, the Dow saw a downswing of 0.62%, while the tech-heavy Nasdaq depreciated by 0.19%.
Shares of the airline witnessed a loss of 1.38% over the previous month, beating the performance of the Transportation sector with its loss of 2.95% and underperforming the S&P 500's gain of 1.56%.
The investment community will be paying close attention to the earnings performance of Southwest Airlines in its upcoming release. The company is slated to reveal its earnings on January 25, 2024. The company's upcoming EPS is projected at $0.14, signifying a 136.84% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.74 billion, up 9.13% from the year-ago period.
Investors should also pay attention to any latest changes in analyst estimates for Southwest Airlines. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.6% lower. Currently, Southwest Airlines is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Southwest Airlines has a Forward P/E ratio of 16.79 right now. This expresses a premium compared to the average Forward P/E of 8.53 of its industry.
Meanwhile, LUV's PEG ratio is currently 0.93. 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 0.43 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.