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Southwest Airlines (LUV) Stock Moves -1.64%: What You Should Know

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Southwest Airlines (LUV) closed the most recent trading day at $43.84, moving -1.64% from the previous trading session. This change traded in line with S&P 500. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.41%.

Heading into today, shares of the airline had lost 5.17% over the past month, lagging the Transportation sector's gain of 0.87% and the S&P 500's gain of 0.73% 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 July 28, 2022. On that day, Southwest Airlines is projected to report earnings of $0.91 per share, which would represent year-over-year growth of 360%.

LUV's full-year Zacks Consensus Estimates are calling for earnings of $2.28 per share and revenue of $23.26 billion. These results would represent year-over-year changes of +206.05% and +47.33%, respectively.

Investors should also note any recent changes to analyst estimates for Southwest Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.7% higher. Southwest Airlines is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Southwest Airlines is currently trading at a Forward P/E ratio of 19.56. Its industry sports an average Forward P/E of 20.16, so we one might conclude that Southwest Airlines is trading at a discount comparatively.

Also, we should mention that LUV has a PEG ratio of 3.26. 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 3.26 based on yesterday's closing prices.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 22% 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.

To follow LUV in the coming trading sessions, be sure to utilize Zacks.com.

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