Southwest Airlines (LUV) Stock Sinks As Market Gains: What You Should Know
Southwest Airlines (LUV) closed at $47.59 in the latest trading session, marking a -0.48% move from the prior day. This move lagged the S&P 500's daily gain of 0.88%. At the same time, the Dow added 0.83%, and the tech-heavy Nasdaq gained 0.7%.
Prior to today's trading, shares of the airline had gained 16.49% over the past month. This has outpaced the Transportation sector's gain of 10.41% and the S&P 500's gain of 9.12% in that time.
LUV will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$1.64, down 267.35% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.18 billion, down 61.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$6.50 per share and revenue of $9.18 billion. These totals would mark changes of -252.22% and -59.05%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for LUV. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.49% higher within the past month. LUV currently has a Zacks Rank of #3 (Hold).
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 242, which puts it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
