Southwest Airlines Stock Buy Hold or Sell Recommendation
LUV Stock | USD 29.73 0.35 1.19% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Southwest Airlines is 'Hold'. Macroaxis provides Southwest Airlines buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding LUV positions. The advice algorithm takes into account all of Southwest Airlines' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Southwest Airlines' buy or sell advice are summarized below:
Real Value 30.61 | Target Price 30.77 | Hype Value 29.73 | Market Value 29.73 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Southwest Airlines given historical horizon and risk tolerance towards Southwest Airlines. When Macroaxis issues a 'buy' or 'sell' recommendation for Southwest Airlines, the advice is generated through an automated system that utilizes algorithms and statistical models.
Southwest |
Execute Southwest Airlines Buy or Sell Advice
The Southwest recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Southwest Airlines. Macroaxis does not own or have any residual interests in Southwest Airlines or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Southwest Airlines' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Southwest Airlines Trading Alerts and Improvement Suggestions
Southwest Airlines generated a negative expected return over the last 90 days | |
Over 82.0% of the company shares are owned by institutional investors | |
On 27th of March 2024 Southwest Airlines paid $ 0.18 per share dividend to its current shareholders | |
Latest headline from jalopnik.com: Southwest, Stop Air Planes Avoid Runway Collision By Less Than 400 Feet in Washington D.C. |
Southwest Airlines Returns Distribution Density
The distribution of Southwest Airlines' historical returns is an attempt to chart the uncertainty of Southwest Airlines' future price movements. The chart of the probability distribution of Southwest Airlines daily returns describes the distribution of returns around its average expected value. We use Southwest Airlines price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Southwest Airlines returns is essential to provide solid investment advice for Southwest Airlines.
Mean Return | 0.03 | Value At Risk | -2.91 | Potential Upside | 3.17 | Standard Deviation | 2.50 |
Return Density |
Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Southwest Airlines historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Southwest Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Southwest Airlines is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Southwest Airlines backward and forwards among themselves. Southwest Airlines' institutional investor refers to the entity that pools money to purchase Southwest Airlines' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares | American Century Companies Inc | 2023-12-31 | 8.2 M | Wellington Management Company Llp | 2023-12-31 | 7.9 M | Provident Trust Company | 2023-12-31 | 7.6 M | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 7.2 M | Us Global Investors Inc | 2023-12-31 | 6.2 M | Fmr Inc | 2023-12-31 | 5.8 M | Dimensional Fund Advisors, Inc. | 2023-12-31 | 5.3 M | Amvescap Plc. | 2023-12-31 | 5.3 M | Northern Trust Corp | 2023-12-31 | 4.8 M | Vanguard Group Inc | 2023-12-31 | 65.4 M | Capital World Investors | 2023-12-31 | 53.5 M |
Southwest Airlines Cash Flow Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Change In Cash | 694M | 8.5B | 1.4B | (3.0B) | (204M) | (193.8M) | |
Free Cash Flow | 3.0B | (1.6B) | 1.8B | (156M) | (389M) | (369.6M) | |
Depreciation | 1.2B | 1.3B | 1.3B | 1.4B | 1.5B | 1.6B | |
Other Non Cash Items | (83M) | (86M) | 169M | 51M | (227M) | (215.7M) | |
Dividends Paid | 372M | 188M | 0.0 | 214M | 428M | 449.4M | |
Capital Expenditures | 1.0B | 515M | 511M | 3.9B | 3.6B | 3.7B | |
Net Income | 2.3B | (3.1B) | 977M | 539M | 465M | 653.7M | |
End Period Cash Flow | 2.5B | 11.1B | 12.5B | 9.5B | 9.3B | 9.8B | |
Change To Inventory | (204M) | 63M | 663M | (77M) | (88.6M) | (84.1M) | |
Investments | 324M | (744M) | (753M) | (3.7B) | (3.2B) | (3.0B) | |
Change Receivables | (94M) | (294M) | (701M) | 422M | 379.8M | 398.8M | |
Net Borrowings | (615M) | 10.8B | 524M | (648M) | (745.2M) | (707.9M) | |
Change To Netincome | (163M) | (764M) | 173M | 486M | 437.4M | 459.3M |
Southwest Airlines Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Southwest Airlines or Passenger Airlines sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Southwest Airlines' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Southwest stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.05 | |
β | Beta against NYSE Composite | 0.85 | |
σ | Overall volatility | 2.54 | |
Ir | Information ratio | -0.03 |
Southwest Airlines Volatility Alert
Southwest Airlines shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Southwest Airlines' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Southwest Airlines' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Southwest Airlines Implied Volatility
Southwest Airlines' implied volatility exposes the market's sentiment of Southwest Airlines stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Southwest Airlines' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Southwest Airlines stock will not fluctuate a lot when Southwest Airlines' options are near their expiration.
Southwest Airlines Fundamentals Vs Peers
Comparing Southwest Airlines' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Southwest Airlines' direct or indirect competition across all of the common fundamentals between Southwest Airlines and the related equities. This way, we can detect undervalued stocks with similar characteristics as Southwest Airlines or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Southwest Airlines' fundamental indicators could also be used in its relative valuation, which is a method of valuing Southwest Airlines by comparing valuation metrics with those of similar companies.
Better Than Average | Worse Than Average | Compare Southwest Airlines to competition |
Fundamentals | Southwest Airlines | Peer Average |
Return On Equity | 0.0439 | -0.31 |
Return On Asset | 0.0153 | -0.14 |
Profit Margin | 0.02 % | (1.27) % |
Operating Margin | 0.04 % | (5.51) % |
Current Valuation | 15.46 B | 16.62 B |
Shares Outstanding | 598.25 M | 571.82 M |
Shares Owned By Insiders | 0.33 % | 10.09 % |
Shares Owned By Institutions | 81.58 % | 39.21 % |
Number Of Shares Shorted | 16.1 M | 4.71 M |
Price To Earning | 29.96 X | 28.72 X |
Price To Book | 1.57 X | 9.51 X |
Price To Sales | 0.63 X | 11.42 X |
Revenue | 26.09 B | 9.43 B |
Gross Profit | 5.98 B | 27.38 B |
EBITDA | 2.33 B | 3.9 B |
Net Income | 465 M | 570.98 M |
Cash And Equivalents | 9.49 B | 2.7 B |
Cash Per Share | 23.03 X | 5.01 X |
Total Debt | 9.2 B | 5.32 B |
Debt To Equity | 0.93 % | 48.70 % |
Current Ratio | 1.58 X | 2.16 X |
Book Value Per Share | 17.63 X | 1.93 K |
Cash Flow From Operations | 3.16 B | 971.22 M |
Short Ratio | 1.82 X | 4.00 X |
Earnings Per Share | 0.76 X | 3.12 X |
Price To Earnings To Growth | 0.56 X | 4.89 X |
Target Price | 30.5 | |
Number Of Employees | 74.81 K | 18.84 K |
Beta | 1.14 | -0.15 |
Market Capitalization | 17.79 B | 19.03 B |
Total Asset | 36.49 B | 29.47 B |
Retained Earnings | 16.3 B | 9.33 B |
Working Capital | 1.7 B | 1.48 B |
Southwest Airlines Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Southwest . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Southwest Airlines Buy or Sell Advice
When is the right time to buy or sell Southwest Airlines? Buying financial instruments such as Southwest Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 12.3B | 9.4B | 9.2B | 9.7B | Total Assets | 36.3B | 35.4B | 36.5B | 38.3B |
Use Investing Ideas to Build Portfolios
In addition to having Southwest Airlines in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Beers
Companies involved in production and distribution of domestic and international beer. The Beers theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Beers Theme or any other thematic opportunities.
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Check out Southwest Airlines Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide.You can also try the AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
Complementary Tools for Southwest Stock analysis
When running Southwest Airlines' price analysis, check to measure Southwest Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Southwest Airlines is operating at the current time. Most of Southwest Airlines' value examination focuses on studying past and present price action to predict the probability of Southwest Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southwest Airlines' price. Additionally, you may evaluate how the addition of Southwest Airlines to your portfolios can decrease your overall portfolio volatility.
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Is Southwest Airlines' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Southwest Airlines. If investors know Southwest will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Southwest Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.30) | Dividend Share 0.72 | Earnings Share 0.76 | Revenue Per Share 43.85 | Quarterly Revenue Growth 0.105 |
The market value of Southwest Airlines is measured differently than its book value, which is the value of Southwest that is recorded on the company's balance sheet. Investors also form their own opinion of Southwest Airlines' value that differs from its market value or its book value, called intrinsic value, which is Southwest Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Southwest Airlines' market value can be influenced by many factors that don't directly affect Southwest Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Southwest Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if Southwest Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Southwest Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.