Yahoo Finance Southwest Airlines (LUV) Gains But Lags Market: What You Should Know
In the latest trading session, Southwest Airlines (LUV) closed at $29.63, marking a +0.03% move from the previous day. The stock lagged the S&P 500's daily gain of 0.56%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, added 1.35%.
Heading into today, shares of the airline had lost 11.95% over the past month, lagging the Transportation sector's loss of 4.21% and the S&P 500's loss of 1.48% in that time.
Wall Street will be looking for positivity from Southwest Airlines as it approaches its next earnings report date. This is expected to be April 27, 2023. On that day, Southwest Airlines is projected to report earnings of -$0.18 per share, which would represent year-over-year growth of 43.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.74 billion, up 22.38% from the year-ago period.
LUV's full-year Zacks Consensus Estimates are calling for earnings of $2.68 per share and revenue of $27.23 billion. These results would represent year-over-year changes of +131.03% and +14.34%, respectively.
It is also important to note the recent changes to analyst estimates for Southwest Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.32% lower within the past month. Southwest Airlines is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, Southwest Airlines currently has a Forward P/E ratio of 11.07. Its industry sports an average Forward P/E of 11.07, so we one might conclude that Southwest Airlines is trading at a no noticeable deviation comparatively.
Meanwhile, LUV's PEG ratio is currently 0.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LUV's industry had an average PEG ratio of 0.34 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% 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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Southwest Airlines Co. (LUV) : Free Stock Analysis Report
