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Southwest (LUV) Moves 15.4% Higher: Will This Strength Last?
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Southwest Airlines (LUV - Free Report) shares ended the last trading session 15.4% higher at $28.55. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 18.9% loss over the past four weeks.
The stock gained following President Donald Trump's announcement that he would pause the "reciprocal" import taxes for 90 days. The President said he felt the pause was needed because "more than 75 countries" had contacted his administration to make trade deals.
This airline is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $6.41 billion, up 1.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Southwest, the consensus EPS estimate for the quarter has been revised 11.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LUV going forward to see if this recent jump can turn into more strength down the road.
Southwest is part of the Zacks Transportation - Airline industry. Joby Aviation, Inc. (JOBY - Free Report) , another stock in the same industry, closed the last trading session 17.5% higher at $6.26. JOBY has returned -11.6% in the past month.
For Joby Aviation, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.18. This represents a change of -28.6% from what the company reported a year ago. Joby Aviation, Inc. currently has a Zacks Rank of #3 (Hold).
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Southwest (LUV) Moves 15.4% Higher: Will This Strength Last?
Southwest Airlines (LUV - Free Report) shares ended the last trading session 15.4% higher at $28.55. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 18.9% loss over the past four weeks.
The stock gained following President Donald Trump's announcement that he would pause the "reciprocal" import taxes for 90 days. The President said he felt the pause was needed because "more than 75 countries" had contacted his administration to make trade deals.
This airline is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $6.41 billion, up 1.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Southwest, the consensus EPS estimate for the quarter has been revised 11.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LUV going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Southwest is part of the Zacks Transportation - Airline industry. Joby Aviation, Inc. (JOBY - Free Report) , another stock in the same industry, closed the last trading session 17.5% higher at $6.26. JOBY has returned -11.6% in the past month.
For Joby Aviation, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.18. This represents a change of -28.6% from what the company reported a year ago. Joby Aviation, Inc. currently has a Zacks Rank of #3 (Hold).