LUV stock: buy or sell
Updated on:
Jan 18th, 2021
2
LUV stock brief
- Southwest Airlines stock sank -4.42% to close at $46.66 on the stock market last Friday.
- Southwest Airlines is presenting its earnings report on Thursday
- 140166 posted a buy rating for Southwest Airlines last Thursday, with a target of $60.00
- Southwest Airlines Co. operates a passenger airline that provides 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 $LUV will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Southwest Airlines stock?
When you are a novel trader and you own a stock with some profit, it's really hard to decide the good moment to sell and get your benefits. Trading strategies allow us to avoid impulsive decisions based on our feelings or the buzz that surrounds the market. When selling, as well as buying, our setups are very easy to follow and are only valid for selling stocks you already own, not for shorting $LUV stock
As a golden rule, you must never hold an investment that shows a losses greater than those expected at the time of the buy. When to sell your stock must always be ruled 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 profit can keep their positions
Southwest Airlines ratings
In the last month, just one rating was published for Southwest Airlines
| Brokerage firm | Rating |
|---|---|
| Jan 14th, 2021 | |
| 140166 | Buy |
Southwest Airlines stock analysis
SMAs overview
Supports and resistances
The current resistances are:
The current supports are:
Bollinger bands
Since the price surpassed the upper band last Thursday, the price has been corrected downwards by 5.68%
Relative strength index
When the stays for so long below 70 and above 30, without indicating moments of overvaluation and undervaluation, the indicator is of little use, and we are currently in such a case.
Southwest Airlines stock price history
Southwest Airlines started trading priced at an adjusted price1 of $0.17 on Jan 1980. Since then, LUV stock has risen by 27,347.06%, with an average of 667.00% per year. If you had invested $1,000USD in Southwest Airlines stock on Jan 1980, it would have a value of $274,470.59 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Southwest Airlines stock
Nobody knows how much a stock will be priced in the future. However, many stock price predictions are issued every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions post their price forecasts based on the stock price action and the company fundamental data. Most of these forecasts follow the release of new financial data by the company, and many times. Again, these forecasts are not direct recommendations for small investors and must not be followed blindly.
There is just one price target issued for Southwest Airlines that predicts a price of $60.00.
| Brokerage firm | Price target |
|---|---|
| Jan 14th, 2021 | |
| 140166 | $50.00 → $60.00 |
Earnings and financials
LUV ($LUV) is presenting quarterly earnings report on Thursday. Market analysts analysts forecast of $-1.66, that is a 16.58% more than previous quarter.
Stocks releasing financial report usually experience a much higher volatility in its price action while market is closed and the day after. This extended trading range in price means that your stop-loss orders may become useless or may trigger far from your aimed price. Southwest Airlines's website probably has additional details.
Southwest Airlines ($LUV) hosted the shareholders call and posted the report last October. LUV beat consensus earnings estimates and posted of $-1.99, that is a 15.32% increase versus the forecasts of $-2.35. In line, reported revenues were $1.8 billion compared to estimates of $1.7 billion.
Compared to the same quarter last year, EPS was $1.23, so current EPS means a drop of -261.79%. Looking at sales, figures dropped a -68.20% compared to $56.4B same quarter a year ago.Southwest Airlines performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Southwest Airlines ($LUV) | 0.50% | 19.50% | 37.40% |
Important:
The thoughts published in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not have an understanding of the specific situations of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are posted for education purposes onlyLUV summary
| Friday, January 15th, 2021 | |
|---|---|
| Open | $48.58 |
| Close | $46.66 |
| Day range | $46.64 - $48.71 |
| Previous close | $48.82 |
| Session gain | -4.42% |
| Average true range | $1.43 |
| 50d mov avg | $45.93 |
| 100d mov avg | $42.43 |
| 200d mov avg | $37.39 |
| Earnings date | January 21st, 2021 |