LUV stock: buy or sell
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
Supports and resistances
The current resistance levels are:
The current support levels are:
Bollinger bands
Since the price broke down the lower band on July 19, the price bounced off by 9.27%
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
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 $287,555.56 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Southwest Airlines stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, financial institutions post their price target based on the stock price action and the company fundamental data. Most of these forecasts follow the publication of new fundamental information by the company, and many times. Again, these predictions are not direct recommendations for individual investors and should not be followed blindly.
We don't have any target price published in the last 4 weeks for Southwest Airlines.
Earnings and financials
On July 22, Southwest Airlines Co. ($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 $-0.35 that was reported for Q2.
Southwest Airlines performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Southwest Airlines ($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 onlyLUV summary
| Wednesday, July 28th, 2021 | |
|---|---|
| Open | $51.48 |
| Close | $51.76 |
| Day range | $50.8 - $52.12 |
| Previous close | $51.15 |
| Session gain | 1.19% |
| Average true range | $2.22 |
| 50d mov avg | $55.65 |
| 100d mov avg | $58.50 |
| 200d mov avg | $52.54 |
| Earnings date | October 21st, 2021 |