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

In the latest trading session, Southwest Airlines (LUV) closed at $42.29, marking a +1.27% move from the previous day.

This story originally appeared on Zacks

Southwest Airlines (LUV) closed the most recent trading day at $42.29, moving +1.27% from the previous trading session. This change outpaced the S&P 500's 0.1% loss on the day. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.1%.

- Zacks

Coming into today, shares of the airline had lost 6.24% in the past month. In that same time, the Transportation sector gained 3.04%, while the S&P 500 gained 4.4%.

Southwest Airlines will be looking to display strength as it nears its next earnings release. In that report, analysts expect Southwest Airlines to post earnings of -$0.16 per share. This would mark year-over-year growth of 87.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.88 billion, up 142.42% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$2.40 per share and revenue of $15.53 billion, which would represent changes of +61.41% and +71.59%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Southwest Airlines. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection has moved 9.12% higher. Southwest Airlines 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 227, which puts it in the bottom 11% 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.

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