LUV stock: buy or sell?

LUV stock price: $31.50 -1.69% At close on April 2nd, 2020

Updated on:
April 2nd, 2020

1

After sliding a scary -11.14% yesterday, Southwest Airlines closed today at $31.50 and eased an awful -1.69%. On Mar 24th LUV rocketed an extraordinary 10.44%.

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 setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean LUV will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

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%).

LUV stock chart (daily)

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 chart (weekly)

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.
LUV earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.23n/a
2017-Q32017-10-260.870.881.1%
2017-Q42018-01-250.770.770.0%
2018-Q12018-04-260.750.750.0%
2018-Q22018-07-261.251.260.8%
2018-Q32018-10-251.061.081.9%
2018-Q42019-01-241.061.1710.4%
2019-Q12019-04-250.89n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/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%.

LUV annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$17,700 M-$757 M4.3%-
2014$18,605 M5.11%$1,136 M6.1%50.07%
2015$19,820 M6.53%$2,181 M11.0%91.99%
2016$20,425 M3.05%$2,244 M11.0%2.89%
2017$21,146 M3.53%$3,357 M15.9%49.60%
2018$21,965 M3.87%$2,465 M11.2%-26.57%
TTM $22,170 M0.93%$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%.
LUV quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(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 M0.25%$1,878 M35.5%273.36%
2018-Q1$4,944 M-6.42%$463 M9.4%-75.35%
2018-Q2$5,742 M16.14%$733 M12.8%58.32%
2018-Q3$5,575 M-2.91%$615 M11.0%-16.10%
2018-Q4$5,704 M2.31%$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 shares517.3 M
Float shares461.6 M
  - Institutional holdings (%)87.2%
  - Insider holdings (%)0.3%
Shares in short selling0.0%

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.
Stock3m6m12m
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