LUV stock: buy or sell?

LUV stock price: $56.53 -0.72% At close on February 21st, 2020

Updated on:
February 21st, 2020

4

Shares of Southwest Airlines closed on Feb/21 at $56.53 and decreased a bad -0.72%. With Feb/21 it's been 5 sliding days in a row, loosing $-2.01 (-3.44%).

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?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. 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. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

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 post stock ratings everyday. Unfortunately, we couldn't detect any rating for LUV stock for the last month.

LUV stock analysis

Daily outlook

Southwest Airlines ended on Feb 21st at $56.53 and decreased a bad -0.72%.

Shares of Southwest Airlines decreased a bad -0.72% and closed at $56.53. Since SMA100d and SMA200d crossed up on October, LUV price slid a -1.60%. From a daily perspective, LUV is in a short term uptrend after plotting its last bottom ($54.63, on January/31) higher than the previous bottom, and its last top ($58.83, on Feb 14th) also over the previous top. Now trading in between its last bottom and last top LUV might consolidate in a plain range, waiting to break out over $58.83 or down under $54.63. Since price and SMA100d lines crossed up on Feb 3rd, LUV climbed $1.55 (2.82%).

LUV stock chart (daily)

Weekly outlook

Southwest Airlines eased a tragic -2.48% this week.

Since late October 2019 when SMA20w and SMA40w crossed up, LUV price slipped $-0.03 per share (-0.05%). Since late August 2019 when LUV stock price broke up the SMA40w line, it gained $6.13 (12.16%).

LUV stock chart (weekly)

LUV stock price history

LUV stock went public on January 2nd, 1980 with a price of $0.121. Since then, LUV stock grew a 47,008.30%, with an average of 1,175.20% per year. If you had invested $1,000 in LUV stock in 1980, it would worth $470,083.00 today.

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

LUV stock historical price chart

LUV stock reached 52-week highs on Feb/14 at $58.83, and all-time highs 2017-12-21 with a price of 65.38.

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, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we have not detected any price target for Southwest Airlines stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when Southwest Airlines published its last earnings report, it . As soon as we get its posted EPS from the earnings report, we will update 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 million dollars. When comparing 2018 vs 2017, nevertheless, profit margin (that is, the net income divided by revenues) decreased a -4.65% to 11.22%.

Southwest Airlines fiscal year ends in December, and to compare 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 million USD. If we compare this TTM figures with the last reported annuality, we can esteem Southwest Airlines business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, stayed steady a slightly good 0.93%. In line, profit margin (net income/sales) remained steady 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 revenues for 2019-Q1, a -9.73% decline compared to previous quarter. Reported quarter earnings marked $387.00 M with a profit margin of 7.52%. Profit margin slightly fell a -3.95% compared to previous quarter when profit margin was 11.47%. When comparing sales to same quarter last year, Southwest Airlines sales marked a good gain and appreciated 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 stock, it's always worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Southwest Airlines, 0.33% of all outstanding shares are owned by its staff.

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$29.2 B
Total shares517.3 M
Float shares457.7 M
  - Institutional holdings (%)87.2%
  - Insider holdings (%)0.3%
Shares in short selling0.0%

LUV summary

Friday, February 21st, 2020
Open$56.53
Close$56.53
Day range$55.46 - $56.80
Previous close$56.94
Session gain-0.72%
Average true range$1.01
50d mov avg$55.44
100d mov avg$55.50
200d mov avg$53.50
Daily patternlt06a
Weekly pattern

Southwest Airlines performance

To better understand Southwest Airlines performance you must compare its gains with other related stocks in same sector or industry. We compared Southwest Airlines against in the following table:
Stock3m6m12m
LUVSouthwest Airline...-0.53%12.16%6.86%

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