Southwest Airlines (LUV) closed the most recent trading day at $45.21, moving -0.77% from the previous trading session. This move lagged the S&P 500’s daily gain of 2.07%. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 0.49%.
Heading into today, shares of the airline had lost 11.31% over the past month, lagging the Transportation sector’s loss of 3.19% and the S&P 500’s loss of 2.08% in that time.
Investors will be hoping for strength from Southwest Airlines as it approaches its next earnings release. On that day, Southwest Airlines is projected to report earnings of -$0.39 per share, which would represent year-over-year growth of 69.77%. Our most recent consensus estimate is calling for quarterly revenue of $4.72 billion, up 134.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$2.64 per share and revenue of $15.37 billion, which would represent changes of +57.56% and +69.83%, respectively, from the prior year.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Southwest Airlines is currently a Zacks Rank #3 (Hold).
The Transportation – Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 235, putting it in the bottom 8% 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.
To follow LUV in the coming trading sessions, be sure to utilize Zacks.com.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
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