LUV stock: buy or sell

LUV stock price: $51.76 1.19% At close on Jul 28th, 2021

Updated on:
Jul 29th, 2021

1

LUV stock brief

  • Southwest Airlines closed on Wednesday at $51.76 after inching a 1.19%.
  • Last April price started dropping and printed 2 consecutive lower tops. shares price lost a -20.06% since the downtrend started.
  • On July 22, Southwest Airlines made public its Q2 earnings report
  • Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets.

Should I buy Southwest Airlines stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $LUV stock a buy?

Currently, Southwest Airlines stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for $LUV in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Southwest Airlines stock?

How to know when is it time to sell Southwest Airlines stock?. Trading strategies allow us to avoid impulsive decisions based on our emotions or the noise that surrounds the market. When selling, as well as buying, our strategies are very simple to use but are only applicable for selling stocks you already own, not for selling short Southwest Airlines stock

As a golden rule, you must never keep an operation that generates losses greater than those expected upon purchase. The timing to sell your stock should always be dictated by the stop-loss (automatic or manual)

Is it time to sell Southwest Airlines stock?

In the current situation of Southwest Airlines there is not any eligible sell setup, so Southwest Airlines stock holders with operations in green can keep their positions

Southwest Airlines ratings

We don't have any rating posted in the previous month for Southwest Airlines

Southwest Airlines stock analysis

From a technical standpoint, Southwest Airlines continues trending lower since last April, and has accumulated a selloff of -20.06%. Like in all downtrends, the stock oscillates drawing lower highs and lows. In this case, we have seen 3 consecutive lower tops.

SMAs overview

LUV stock SMAs chart

Supports and resistances

The current resistance levels are:

  • R1: $52.19 (0.83% above)
  • R2: $52.23 (0.91% above)
  • R3: $52.33 (1.10% above)
  • The current support levels are:

  • S1: $51.65 (-0.21% below)
  • S2: $51.21 (-1.06% below)
  • S3: $50.83 (-1.80% below)
  • Bollinger bands

    Since the price broke down the lower band on July 19, the price bounced off by 9.27%

    LUV stock Bollinger Bands chart

    Relative strength index

    The RSI broke out the oversold line of 30 on July 20 after just being in the oversold zone for just one day (what can be considered a strength signal). The RSI value on Wednesday was 45.74. Southwest Airlines shares skyrocketed a 6.72% since RSI left the oversold zone

    LUV stock RSI chart

    Southwest Airlines stock price history

    Southwest Airlines IPO was on Jan 2nd, 1980 at $0.18 per share1. Since then, LUV stock has risen by 28,655.56%, with an average of 698.92% per year. If you had invested thousand dollars in Southwest Airlines stock on Jan 1980, it would worth $287,555.56 today.

    1: Adjusted price after possible price splits or reverse-splits

    LUV stock price history chart

    Price target for Southwest Airlines stock

    How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.

    Along with buy or sell recommendations, financial institutions post their price target based on the stock price action and the company fundamental data. Most of these forecasts follow the publication of new fundamental information by the company, and many times. Again, these predictions are not direct recommendations for individual investors and should not be followed blindly.

    We don't have any target price published in the last 4 weeks for Southwest Airlines.

    Earnings and financials

    On July 22, Southwest Airlines Co. ($LUV) posted EPS for that slightly lowered Wall St. expectations. Quarterly EPS was $-0.35 per share from an estimated $-0.32. This Q2 report represents an earnings surprise of -9.37%. On the contrary, reported sales were $4.0 billion, aligned with analysts' forecasts.

    This compares to Earnings of $-2.67 per share a year ago, so reported EPS means an increase of 86.89%. Looking at revenues, figures exploded a 297.62% compared to $10.1B year over year.

    LUV ($LUV) is presenting financial report next October. Estimated for this quarter is $0.18, compared to $-0.35 that was reported for Q2.

    Southwest Airlines performance

    LUV performance compared
    Company1m3m6m
    Southwest Airlines ($LUV) -2.30% -16.70% 14.60%

    Disclaimer:
    The comments given in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this text does not know the individual scenarios of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are provided for education motives only

    LUV summary

    Wednesday, July 28th, 2021
    Open$51.48
    Close$51.76
    Day range$50.8 - $52.12
    Previous close$51.15
    Session gain1.19%
    Average true range$2.22
    50d mov avg$55.65
    100d mov avg$58.50
    200d mov avg$52.54
    Earnings dateOctober 21st, 2021

    Frequently asked questions

    What is Southwest Airlines stock symbol?

    Southwest Airlines Co. is a public company trading in the US stock market with the LUV symbol

    Is Southwest Airlines stock a buy or sell?

    Southwest Airlines had no ratings in the last four weeks Read the article to get additional tips on trading LUV stock.

    Will LUV go up?

    There were no price targets published by analysts in the last month for Southwest Airlines.