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

Southwest Airlines (LUV) closed at $49.58 in the latest trading session, marking a +1.02% move from the prior day.

This story originally appeared on Zacks

Southwest Airlines (LUV) closed the most recent trading day at $49.58, moving +1.02% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.7%.

- Zacks

Prior to today's trading, shares of the airline had gained 3.63% over the past month. This has outpaced the Transportation sector's loss of 1.77% and the S&P 500's loss of 0.27% in that time.

Wall Street will be looking for positivity from LUV as it approaches its next earnings report date. The company is expected to report EPS of -$0.10, up 94.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.62 billion, up 157.72% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.78 per share and revenue of $15.96 billion. These totals would mark changes of +71.38% and +76.42%, respectively, from last year.

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. The Zacks Consensus EPS estimate has moved 20.65% lower within the past month. LUV is currently sporting a Zacks Rank of #4 (Sell).

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 30% 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.

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