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Is Southwest Airlines (LUV) Outperforming Other Transportation Stocks This Year?

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For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Southwest Airlines (LUV - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.

Southwest Airlines is a member of the Transportation sector. This group includes 135 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Southwest Airlines is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for LUV's full-year earnings has moved 222.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, LUV has gained about 12.1% so far this year. In comparison, Transportation companies have returned an average of 5.3%. This shows that Southwest Airlines is outperforming its peers so far this year.

Martin Midstream Partners L.P. (MMLP - Free Report) is another Transportation stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 66.3%.

In Martin Midstream Partners L.P.'s case, the consensus EPS estimate for the current year increased 23.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Southwest Airlines is a member of the Transportation - Airline industry, which includes 31 individual companies and currently sits at #26 in the Zacks Industry Rank. Stocks in this group have gained about 36% so far this year, so LUV is slightly underperforming its industry this group in terms of year-to-date returns.

On the other hand, Martin Midstream Partners L.P. belongs to the Transportation - Shipping industry. This 43-stock industry is currently ranked #202. The industry has moved +15.9% year to date.

Going forward, investors interested in Transportation stocks should continue to pay close attention to Southwest Airlines and Martin Midstream Partners L.P. as they could maintain their solid performance.


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