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Why Southwest Airlines (LUV) Dipped More Than Broader Market Today
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In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $28.28, marking a -1.67% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.19% for the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 0.54%.
Shares of the airline witnessed a loss of 11.59% over the previous month, trailing the performance of the Transportation sector with its gain of 2.1% and the S&P 500's gain of 3.18%.
Analysts and investors alike will be keeping a close eye on the performance of Southwest Airlines in its upcoming earnings disclosure. The company's earnings report is set to go public on April 25, 2024. On that day, Southwest Airlines is projected to report earnings of -$0.05 per share, which would represent year-over-year growth of 81.48%. Alongside, our most recent consensus estimate is anticipating revenue of $6.46 billion, indicating a 13.15% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.86 per share and a revenue of $28.59 billion, demonstrating changes of +18.47% and +9.59%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Southwest Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 1.53% higher within the past month. Southwest Airlines presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Southwest Airlines has a Forward P/E ratio of 15.43 right now. This expresses a premium compared to the average Forward P/E of 8.67 of its industry.
Meanwhile, LUV's PEG ratio is currently 0.79. 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 0.72 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Why Southwest Airlines (LUV) Dipped More Than Broader Market Today
In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $28.28, marking a -1.67% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.19% for the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 0.54%.
Shares of the airline witnessed a loss of 11.59% over the previous month, trailing the performance of the Transportation sector with its gain of 2.1% and the S&P 500's gain of 3.18%.
Analysts and investors alike will be keeping a close eye on the performance of Southwest Airlines in its upcoming earnings disclosure. The company's earnings report is set to go public on April 25, 2024. On that day, Southwest Airlines is projected to report earnings of -$0.05 per share, which would represent year-over-year growth of 81.48%. Alongside, our most recent consensus estimate is anticipating revenue of $6.46 billion, indicating a 13.15% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.86 per share and a revenue of $28.59 billion, demonstrating changes of +18.47% and +9.59%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Southwest Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 1.53% higher within the past month. Southwest Airlines presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Southwest Airlines has a Forward P/E ratio of 15.43 right now. This expresses a premium compared to the average Forward P/E of 8.67 of its industry.
Meanwhile, LUV's PEG ratio is currently 0.79. 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 0.72 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.