Markets

Southwest Airlines (LUV) Gains As Market Dips: What You Should Know

Southwest Airlines (LUV) closed at $39.25 in the latest trading session, marking a +0.31% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.66%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.8%.

Prior to today's trading, shares of the airline had lost 3.64% over the past month. This has lagged the Transportation sector's gain of 3.84% and the S&P 500's gain of 5.22% in that time.

Wall Street will be looking for positivity from LUV as it approaches its next earnings report date. This is expected to be October 22, 2020. The company is expected to report EPS of -$2.44, down 298.37% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.68 billion, down 70.24% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$6.66 per share and revenue of $9.43 billion. These totals would mark changes of -255.97% and -57.96%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for LUV. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.1% lower. LUV is currently sporting a Zacks Rank of #4 (Sell).

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 244, which puts it in the bottom 4% 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.

To follow LUV in the coming trading sessions, be sure to utilize 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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