Southwest Airlines Co (NYSE: LUV) Up 1.32%: What Analysts Predict Now

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Southwest Airlines Co (NYSE:LUV) shares, rose in value, with the stock price up by 1.32% to the previous day’s close as strong demand from buyers drove the stock to $28.34.

Actively observing the price movement in the last trading, the stock closed the session at $27.97. The value of beta (5-year monthly) was 1.14 whereas the PE ratio was 38.54 over 12-month period. Referring to stock’s 52-week performance, its high was $39.53, and the low was $21.91. On the whole, LUV has fluctuated by -18.00% over the past month.

With the market capitalization of Southwest Airlines Co currently standing at about $16.91 billion, investors are eagerly awaiting this quarter’s results, scheduled for Apr 25, 2024. The company’s Forward Dividend Ratio is 0.72, with its dividend yield at 2.54%. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be -$0.31, which is expected to increase to $1.02 for fiscal year $1.63 and then to about $2.35 by fiscal year 2025. Data indicates that the EPS growth is expected to be 3.80% in 2025, while the next year’s EPS growth is forecast to be 44.20%.

Analysts have estimated the company’s revenue for the quarter at $6.45 billion, with a low estimate of $6.4 billion and a high estimate of $6.51 billion. According to the average forecast, sales growth in current quarter could jump up 12.60%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2025, the company’s y-o-y revenues would reach $28.43 billion, representing an increase of 8.90% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that LUV’s technical picture suggests that short-term indicators denote the stock is a 100% Sell on average. However, medium term indicators have put the stock in the category of 50% Buy while long term indicators on average have been pointing out that it is a 100% Sell.

The stock’s technical analysis shows that the PEG ratio is about 1.72, with the price of LUV currently trading nearly -3.51% and -9.41% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 37.17, while the 7-day volatility ratio is showing 2.16% which for the 30-day chart, stands at 2.26%. Furthermore, Southwest Airlines Co (LUV)’s beta value is 1.14, and its average true range (ATR) is 0.75.

A comparison of Southwest Airlines Co (LUV) with its peers suggests the former has fared considerably weaker in the market. LUV showed an intraday change of 1.32% in last session, and over the past year, it shrunk by -10.66%%.

Data on historical trading for Southwest Airlines Co (NYSE:LUV) indicates that the trading volumes over the past 10 days have averaged 7.95 million and over the past 3 months, they’ve averaged 8.49 million. According to company’s latest data on outstanding shares, there are 596.51 million shares outstanding.

Nearly 0.49% of Southwest Airlines Co’s shares belong to company insiders and institutional investors own 81.89% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 17.69 million shares as on Mar 15, 2024, resulting in a short ratio of 1.99. According to the data, the short interest in Southwest Airlines Co (LUV) stood at 2.96% of shares outstanding as of Mar 15, 2024; the number of short shares registered in Feb 15, 2024 reached 19.27 million. The stock has fallen by -1.87% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the LUV stock heading into the next quarter.

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