Southwest Airlines (LUV) Outpaces Stock Market Gains: What You Should Know

·2-min read

Southwest Airlines (LUV) closed the most recent trading day at $61.66, moving +1.6% from the previous trading session. This change outpaced the S&P 500's 0.74% gain on the day.

Heading into today, shares of the airline had lost 4.37% over the past month, lagging the Transportation sector's gain of 5.14% and the S&P 500's gain of 3.21% in that time.

The company is expected to report EPS of -$0.60, up 77.53% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.6 billion, up 256.84% from the year-ago period.

LUV's full-year Zacks Consensus Estimates are calling for earnings of -$1.55 per share and revenue of $14.84 billion. These results would represent year-over-year changes of +75.08% and +64.07%, respectively.

Investors should also note any recent changes to analyst estimates for LUV. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection has moved 12.02% higher. LUV is currently a Zacks Rank #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 13% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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