Yahoo Finance Southwest Airlines (LUV) is a Top-Ranked Value Stock: Should You Buy?
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Southwest Airlines (LUV)
Based in Dallas, TX, Southwest Airlines is a passenger airline that provides scheduled air transportation in the United States and 'ten near-international' markets. The company, incorporated in Texas in 1967, commenced operations on Jun 18, 1971, with three Boeing 737 jets serving the cities of Dallas, Houston and San Antonio.
LUV sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Transportation - Airline industry's P/E of 15.6X, shares of Southwest Airlines are trading at a forward P/E of 16.9X. LUV also has a PEG Ratio of 2.8, a Price/Cash Flow ratio of 22866.1X, and a Price/Sales ratio of 1X.
A company's earnings performance is important for value investors as well. For fiscal 2022, nine analysts revised their earnings estimate higher in the last 60 days for LUV, while the Zacks Consensus Estimate has increased $0.18 to $2.29 per share. LUV also holds an average earnings surprise of 54.7%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding LUV to their portfolios.
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Southwest Airlines Co. (LUV) : Free Stock Analysis Report
