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Southwest Airlines (LUV) Gains As Market Dips: What You Should Know
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In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $36.45, marking a +0.41% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.76%, and the Nasdaq, a tech-heavy index, lost 10.92%.
Prior to today's trading, shares of the airline had lost 0.82% over the past month. This has lagged the Transportation sector's gain of 3.05% and the S&P 500's gain of 2.18% in that time.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release, which is expected to be January 26, 2023. In that report, analysts expect Southwest Airlines to post earnings of $0.22 per share. This would mark year-over-year growth of 57.14%. Our most recent consensus estimate is calling for quarterly revenue of $6.31 billion, up 24.88% from the year-ago period.
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. 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. 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. The Zacks Consensus EPS estimate has moved 4.15% lower within the past month. Southwest Airlines is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Southwest Airlines is currently trading at a Forward P/E ratio of 11.63. For comparison, its industry has an average Forward P/E of 12.71, which means Southwest Airlines is trading at a discount to the group.
Also, we should mention that LUV has a PEG ratio of 1.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LUV's industry had an average PEG ratio of 0.9 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Southwest Airlines (LUV) Gains As Market Dips: What You Should Know
In the latest trading session, Southwest Airlines (LUV - Free Report) closed at $36.45, marking a +0.41% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.76%, and the Nasdaq, a tech-heavy index, lost 10.92%.
Prior to today's trading, shares of the airline had lost 0.82% over the past month. This has lagged the Transportation sector's gain of 3.05% and the S&P 500's gain of 2.18% in that time.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release, which is expected to be January 26, 2023. In that report, analysts expect Southwest Airlines to post earnings of $0.22 per share. This would mark year-over-year growth of 57.14%. Our most recent consensus estimate is calling for quarterly revenue of $6.31 billion, up 24.88% from the year-ago period.
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. 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. 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. The Zacks Consensus EPS estimate has moved 4.15% lower within the past month. Southwest Airlines is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Southwest Airlines is currently trading at a Forward P/E ratio of 11.63. For comparison, its industry has an average Forward P/E of 12.71, which means Southwest Airlines is trading at a discount to the group.
Also, we should mention that LUV has a PEG ratio of 1.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LUV's industry had an average PEG ratio of 0.9 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.