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Southwest Airlines (LUV) Dips More Than Broader Markets: What You Should Know
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Southwest Airlines (LUV - Free Report) closed at $32.81 in the latest trading session, marking a -0.94% move from the prior day. This change lagged the S&P 500's daily loss of 0.8%. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq lost 0.03%.
Heading into today, shares of the airline had lost 2.93% over the past month, outpacing the Transportation sector's loss of 5.56% and the S&P 500's loss of 5.13% in that time.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect Southwest Airlines to post earnings of $0.41 per share. This would mark year-over-year growth of 278.26%. Our most recent consensus estimate is calling for quarterly revenue of $6.23 billion, up 33.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.10 per share and revenue of $24.09 billion. These totals would mark changes of +197.67% and +52.54%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Southwest Airlines. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.47% lower. Southwest Airlines is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Southwest Airlines has a Forward P/E ratio of 15.75 right now. This represents a premium compared to its industry's average Forward P/E of 12.69.
We can also see that LUV currently has a PEG ratio of 2.63. 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. The Transportation - Airline was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 131, putting it in the bottom 49% 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.
To follow LUV in the coming trading sessions, be sure to utilize Zacks.com.
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Southwest Airlines (LUV) Dips More Than Broader Markets: What You Should Know
Southwest Airlines (LUV - Free Report) closed at $32.81 in the latest trading session, marking a -0.94% move from the prior day. This change lagged the S&P 500's daily loss of 0.8%. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq lost 0.03%.
Heading into today, shares of the airline had lost 2.93% over the past month, outpacing the Transportation sector's loss of 5.56% and the S&P 500's loss of 5.13% in that time.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect Southwest Airlines to post earnings of $0.41 per share. This would mark year-over-year growth of 278.26%. Our most recent consensus estimate is calling for quarterly revenue of $6.23 billion, up 33.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.10 per share and revenue of $24.09 billion. These totals would mark changes of +197.67% and +52.54%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Southwest Airlines. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.47% lower. Southwest Airlines is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Southwest Airlines has a Forward P/E ratio of 15.75 right now. This represents a premium compared to its industry's average Forward P/E of 12.69.
We can also see that LUV currently has a PEG ratio of 2.63. 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. The Transportation - Airline was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 131, putting it in the bottom 49% 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.
To follow LUV in the coming trading sessions, be sure to utilize Zacks.com.