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Southwest Airlines (LUV) Stock Moves -1.5%: What You Should Know

Southwest Airlines (LUV) closed at $43.99 in the latest trading session, marking a -1.5% move from the prior day.

This story originally appeared on Zacks

Southwest Airlines (LUV) closed the most recent trading day at $43.99, moving -1.5% from the previous trading session. This change was narrower than the S&P 500's 1.94% loss on the day. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 0.39%.

- Zacks

Coming into today, shares of the airline had lost 1.22% in the past month. In that same time, the Transportation sector gained 5.57%, while the S&P 500 gained 5.72%.

Southwest Airlines will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.03, up 97.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.99 billion, up 147.95% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Southwest Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 5.22% lower. Southwest Airlines is currently a Zacks Rank #3 (Hold).

In terms of valuation, Southwest Airlines is currently trading at a Forward P/E ratio of 23.22. For comparison, its industry has an average Forward P/E of 18.37, which means Southwest Airlines is trading at a premium to the group.

Meanwhile, LUV's PEG ratio is currently 3.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LUV's industry had an average PEG ratio of 0.33 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 239, putting it in the bottom 7% 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.

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

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