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Southwest (LUV) Surges 8.1%: Is This an Indication of Further Gains?
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Southwest Airlines (LUV - Free Report) shares soared 8.1% in the last trading session to close at $37.35. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.1% gain over the past four weeks.
The upside was driven by optimism in the airline industry, which followed the better-than-expected second-quarter 2025 earnings results reported by Delta Air Lines (DAL - Free Report) . Notably, the earnings and revenue beat, apart from the restoration of the full-year guidance, pleased investors.
This airline is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -12.1%. Revenues are expected to be $7.3 billion, down 0.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Southwest, the consensus EPS estimate for the quarter has been revised 20.3% 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. JetBlue Airways (JBLU - Free Report) , another stock in the same industry, closed the last trading session 7.8% higher at $4.56. JBLU has returned -13% in the past month.
For JetBlue, the consensus EPS estimate for the upcoming report has changed -85% over the past month to -$0.31. This represents a change of -487.5% from what the company reported a year ago. JetBlue currently has a Zacks Rank of #3 (Hold).
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Southwest (LUV) Surges 8.1%: Is This an Indication of Further Gains?
Southwest Airlines (LUV - Free Report) shares soared 8.1% in the last trading session to close at $37.35. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.1% gain over the past four weeks.
The upside was driven by optimism in the airline industry, which followed the better-than-expected second-quarter 2025 earnings results reported by Delta Air Lines (DAL - Free Report) . Notably, the earnings and revenue beat, apart from the restoration of the full-year guidance, pleased investors.
This airline is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -12.1%. Revenues are expected to be $7.3 billion, down 0.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Southwest, the consensus EPS estimate for the quarter has been revised 20.3% 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 #3 (Hold). 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. JetBlue Airways (JBLU - Free Report) , another stock in the same industry, closed the last trading session 7.8% higher at $4.56. JBLU has returned -13% in the past month.
For JetBlue, the consensus EPS estimate for the upcoming report has changed -85% over the past month to -$0.31. This represents a change of -487.5% from what the company reported a year ago. JetBlue currently has a Zacks Rank of #3 (Hold).