Southwest Airlines (LUV) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Southwest Airlines (LUV) closed at $31.82, marking a +1.21% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.33%.
Coming into today, shares of the airline had lost 6.57% in the past month. In that same time, the Transportation sector lost 1.63%, while the S&P 500 gained 1.72%.
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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.68 per share and revenue of $27.23 billion. These totals would mark changes of +131.03% and +14.34%, respectively, from last year.
Any recent changes to analyst estimates for Southwest Airlines should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.32% lower. Southwest Airlines currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Southwest Airlines is holding a Forward P/E ratio of 11.75. For comparison, its industry has an average Forward P/E of 11.75, which means Southwest Airlines is trading at a no noticeable deviation to the group.
It is also worth noting that LUV currently has a PEG ratio of 0.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.36 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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
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