We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Southwest Airlines (LUV) Stock Drops Despite Market Gains: Important Facts to Note
Read MoreHide Full Article
The latest trading session saw Southwest Airlines (LUV - Free Report) ending at $28.03, denoting a -1.06% adjustment from its last day's close. This change lagged the S&P 500's 0.11% gain on the day. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.23%.
The airline's stock has dropped by 17.67% in the past month, falling short of the Transportation sector's gain of 0.6% and the S&P 500's gain of 1.5%.
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 April 25, 2024. The company's earnings per share (EPS) are projected to be -$0.27, reflecting no change from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.47 billion, up 13.38% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.65 per share and a revenue of $28.63 billion, signifying shifts of +5.1% and +9.72%, respectively, from the last year.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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 10.4% lower within the past month. Southwest Airlines is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Southwest Airlines is presently trading at a Forward P/E ratio of 17.15. Its industry sports an average Forward P/E of 9.08, so one might conclude that Southwest Airlines is trading at a premium comparatively.
Investors should also note that LUV has a PEG ratio of 0.93 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Airline was holding an average PEG ratio of 0.75 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Southwest Airlines (LUV) Stock Drops Despite Market Gains: Important Facts to Note
The latest trading session saw Southwest Airlines (LUV - Free Report) ending at $28.03, denoting a -1.06% adjustment from its last day's close. This change lagged the S&P 500's 0.11% gain on the day. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.23%.
The airline's stock has dropped by 17.67% in the past month, falling short of the Transportation sector's gain of 0.6% and the S&P 500's gain of 1.5%.
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 April 25, 2024. The company's earnings per share (EPS) are projected to be -$0.27, reflecting no change from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.47 billion, up 13.38% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.65 per share and a revenue of $28.63 billion, signifying shifts of +5.1% and +9.72%, respectively, from the last year.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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 10.4% lower within the past month. Southwest Airlines is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Southwest Airlines is presently trading at a Forward P/E ratio of 17.15. Its industry sports an average Forward P/E of 9.08, so one might conclude that Southwest Airlines is trading at a premium comparatively.
Investors should also note that LUV has a PEG ratio of 0.93 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Airline was holding an average PEG ratio of 0.75 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.