LUV stock: buy or sell?
Updated on:
April 2nd, 2020
1
Southwest Airlines Co. operates a passenger airline that provides scheduled air transportation services in the United States and near-international markets.
Should I buy LUV stock?
Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to choose 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.Currently, Southwest Airlines stock doesn't match any of these trading strategies, so our recommendation is not to buy.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Southwest Airlines stock a buy?
Banks and financial institutions publish stock ratings everyday.
Unfortunately, we couldn't find any rating for LUV stock for the last month.LUV stock analysis
Daily outlook
After sliding a scary -11.14% yesterday, Southwest Airlines closed today at $31.50 and eased an awful -1.69%.
After sliding a scary -11.14% yesterday, Southwest Airlines closed today at $31.50 and eased an awful -1.69%. Since Feb/25 when LUV stock price broke down the SMA200d line, it slid $-22.40 per share (-41.56%).
Weekly outlook
After boosting an astounding 12.20% in a week last week, Southwest Airlines closed this week at $31.50 and collapsed a bloodcurdling -13.41%.
Since late February, when LUV stock price broke down the 40-weeks moving avarage line, it slid $-24.81 per share (-44.06%). Stocks under the 40w moving average line are usually not recommended for average traders.
LUV stock price history
LUV IPO was on January 2nd, 1980 at $0.11 per share1. Since then, LUV stock grew a 28,536.40%, with a yearly average of 713.40%. If you had invested $1,000 in LUV stock in 1980, it would worth $285,364.00 today.
1: Adjusted price after possible price splits or reverse-splits.
LUV stock historical price chart
LUV stock reached 52-week highs on February at $58.60, and all-time highs 2017-12-21 with a price of 65.13.
LUV stock price target
Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' LUV stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not found any price target for Southwest Airlines stock by any trusted analyst.Financials and fundamental analysis
Earnings date and Earnings per Share
After presenting its last earnings report on April, Southwest Airlines . As soon as we get its actual EPS from the earnings report, we will extend this report.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 1.23 | n/a |
| 2017-Q3 | 2017-10-26 | 0.87 | 0.88 | 1.1% |
| 2017-Q4 | 2018-01-25 | 0.77 | 0.77 | 0.0% |
| 2018-Q1 | 2018-04-26 | 0.75 | 0.75 | 0.0% |
| 2018-Q2 | 2018-07-26 | 1.25 | 1.26 | 0.8% |
| 2018-Q3 | 2018-10-25 | 1.06 | 1.08 | 1.9% |
| 2018-Q4 | 2019-01-24 | 1.06 | 1.17 | 10.4% |
| 2019-Q1 | 2019-04-25 | 0.89 | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
Compared to 2017, last anual sales report draw a decent growth of 3.87% to $21,965.00 M USD. When comparing 2018 vs 2017, nevertheless, profit margin (that is, the net income divided by revenues) depreciated a -4.65% to 11.22%. Southwest Airlines fiscal year ends in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Southwest Airlines TTM sales up to March 2019 were $22,170.00 and income $2,389.00 M dollars. If we compare this TTM figures with the last reported annuality, we can esteem Southwest Airlines business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, remained constant a slightly good 0.93%. In the same way, profit margin (net income/revenues) stayed stable at 11.22%.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $17,700 M | - | $757 M4.3% | - |
| 2014 | $18,605 M | 5.11% | $1,136 M6.1% | 50.07% |
| 2015 | $19,820 M | 6.53% | $2,181 M11.0% | 91.99% |
| 2016 | $20,425 M | 3.05% | $2,244 M11.0% | 2.89% |
| 2017 | $21,146 M | 3.53% | $3,357 M15.9% | 49.60% |
| 2018 | $21,965 M | 3.87% | $2,465 M11.2% | -26.57% |
| TTM | $22,170 M | 0.93% | $2,389 M10.8% | -3.08% |
Quarterly financial results
Southwest Airlines posted $5,149.00 M in sales for 2019-Q1, a -9.73% less compared to previous quarter. Reported quarter income marked $387.00 million with a profit margin of 7.52%. Profit margin declined a -3.95% compared to previous quarter when profit margin was 11.47%. When comparing turnover to same quarter last year, Southwest Airlines sales marked a good increase and gained a 4.15%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $5,740 M | - | $746 M13.0% | - |
| 2017-Q3 | $5,270 M | -8.19% | $503 M9.5% | -32.57% |
| 2017-Q4 | $5,283 M | 0.25% | $1,878 M35.5% | 273.36% |
| 2018-Q1 | $4,944 M | -6.42% | $463 M9.4% | -75.35% |
| 2018-Q2 | $5,742 M | 16.14% | $733 M12.8% | 58.32% |
| 2018-Q3 | $5,575 M | -2.91% | $615 M11.0% | -16.10% |
| 2018-Q4 | $5,704 M | 2.31% | $654 M11.5% | 6.34% |
| 2019-Q1 | $5,149 M | -9.73% | $387 M7.5% | -40.83% |
Southwest Airlines ownership
When you are planning to buy a company, it's worth to have a look its ownership structure.Southwest Airlines shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.31% of all shares.
Bearish positions for LUV stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Southwest Airlines:
| LUV | |
|---|---|
| Market cap | $16.3 B |
| Total shares | 517.3 M |
| Float shares | 461.6 M |
| - Institutional holdings (%) | 87.2% |
| - Insider holdings (%) | 0.3% |
| Shares in short selling | 0.0% |
LUV summary
| Thursday, April 2nd, 2020 | |
|---|---|
| Open | $32.11 |
| Close | $31.50 |
| Day range | $30.87 - $32.84 |
| Previous close | $32.04 |
| Session gain | -1.69% |
| Average true range | $4.46 |
| 50d mov avg | $47.40 |
| 100d mov avg | $51.31 |
| 200d mov avg | $51.89 |
| Daily pattern | |
| Weekly pattern | |
Southwest Airlines performance
Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We selected as the bechmarking frame for Southwest Airlines stock.| Stock | 3m | 6m | 12m |
|---|---|---|---|
| LUVSouthwest Airline... | -41.82% | -39.91% | -39.99% |
Southwest Airlines competitors
Unfortunately, we could not find any public company that could be defined as Southwest Airlines competitor. This doesn't mean Southwest Airlines does not have any competitor in the market, it's just we could not detected it.Latest LUV stock news
- InvestorPlace3 Big Stock Charts for Friday: Southwest Airlines, Juniper Networks and BorgWarnerJuly 26, 2019
- Seeking AlphaSouthwest Airlines Is Way Too CheapJuly 24, 2019
- Seeking AlphaSouthwest Airlines: Resilient, Despite The ChallengesJuly 8, 2019
- Seeking AlphaBest Of Breed: Southwest Airlines Is A Strong BuyMay 28, 2019
- Seeking AlphaTime To Show LUV Some Love? - Consider Southwest Airlines Before It Takes OffApril 15, 2019