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Southwest Airlines (LUV) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $38.18, marking a -0.24% move from the previous day. This change lagged the S&P 500's daily gain of 2.62%. At the same time, the Dow added 3.16%, and the tech-heavy Nasdaq gained 2.06%.

Wall Street will be looking for positivity from LUV as it approaches its next earnings report date. The company is expected to report EPS of -$2.94, down 314.6% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $576.65 million, down 90.24% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$4.30 per share and revenue of $10.69 billion. These totals would mark changes of -200.7% and -52.31%, respectively, from last year.

Any recent changes to analyst estimates for LUV should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.62% lower within the past month. LUV is currently a Zacks Rank #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 86, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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