Markets

Southwest Airlines (LUV) Dips More Than Broader Markets: What You Should Know

Southwest Airlines (LUV) closed at $32.64 in the latest trading session, marking a -1.75% move from the prior day. This change lagged the S&P 500's 0.94% loss on the day. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 2.13%.

Heading into today, shares of the airline had gained 1.19% over the past month, outpacing the Transportation sector's gain of 0.72% and the S&P 500's gain of 0.02% in that time.

LUV will be looking to display strength as it nears its next earnings release, which is expected to be July 23, 2020. In that report, analysts expect LUV to post earnings of -$2.67 per share. This would mark a year-over-year decline of 294.89%. Our most recent consensus estimate is calling for quarterly revenue of $790.08 million, down 86.63% from the year-ago period.

LUV's full-year Zacks Consensus Estimates are calling for earnings of -$4.67 per share and revenue of $10.64 billion. These results would represent year-over-year changes of -209.37% and -52.54%, respectively.

Investors should also note any recent changes to analyst estimates for LUV. These recent revisions tend to reflect the evolving nature of short-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. 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. Within the past 30 days, our consensus EPS projection has moved 1.58% higher. LUV is holding a Zacks Rank of #3 (Hold) right now.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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