Southwest Airlines Stock Analysis

LUV Stock  USD 29.19  0.08  0.27%   
Southwest Airlines is undervalued with Real Value of 30.43 and Target Price of 30.77. The main objective of Southwest Airlines stock analysis is to determine its intrinsic value, which is an estimate of what Southwest Airlines is worth, separate from its market price. There are two main types of Southwest Airlines' stock analysis: fundamental analysis and technical analysis. Fundamental analysis focuses on the financial and economic factors that affect Southwest Airlines' performance, such as revenue growth, earnings, and financial stability. Technical analysis, on the other hand, focuses on the price and volume data of Southwest Airlines' stock to identify patterns and trends that may indicate its future price movements.
The Southwest Airlines stock is traded in the USA on New York Stock Exchange, with the market opening at 09:30:00 and closing at 16:00:00 every Mon,Tue,Wed,Thu,Fri except for officially observed holidays in the USA. Southwest Airlines is usually not traded on Thanksgiving Day, Christmas Day, New Year 's Day, Dr . Martin Luther King Jr 's Birthday, Washington 's Birthday, Good Friday, Memorial Day, Juneteenth Holiday, Independence Day, Labour Day. Southwest Stock trading window is adjusted to America/New York timezone. Here, you can get updates on important government artifacts, including earning estimates, SEC corporate filings, announcements, and Southwest Airlines' ongoing operational relationships across important fundamental and technical indicators.
  
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Southwest Airlines. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment.
For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide.

Southwest Stock Analysis Notes

About 82.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.66. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Southwest Airlines has Price/Earnings To Growth (PEG) ratio of 0.57. The entity last dividend was issued on the 5th of March 2024. The firm had 3:2 split on the 16th of February 2001. Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets. The company was incorporated in 1967 and is headquartered in Dallas, Texas. Southwest Airlines operates under Airlines classification in the United States and is traded on New York Stock Exchange. It employs 64123 people. To find out more about Southwest Airlines contact Gary Kelly at 214 792 4000 or learn more at https://www.southwest.com.

Southwest Airlines Quarterly Total Revenue

6.82 Billion

Southwest Airlines Investment Alerts

Many investors view ongoing market volatility as an opportunity to purchase more stocks at a favorable price or short it to generate a bearish trend profit opportunity. If you are one of those investors, make sure you clearly understand the position you are entering. Southwest Airlines' investment alerts are automatically generated signals that are significant enough to either complement your investing judgment regarding Southwest Airlines or challenge it. These alerts can help you understand what you are buying and avoid costly mistakes.
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 finance.yahoo.com: Southwest Airlines To Offer Red Eye Flights 3 Ways They Can Save Money on Your Trip

Southwest Airlines Upcoming and Recent Events

Earnings reports are used by Southwest Airlines to provide an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Every quarterly earnings report provides investors with three things: an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Southwest Airlines previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
25th of April 2024
Upcoming Quarterly Report
View
25th of July 2024
Next Financial Report
View
31st of March 2024
Next Fiscal Quarter End
View
23rd of January 2025
Next Fiscal Year End
View
31st of December 2023
Last Quarter Report
View
31st of December 2023
Last Financial Announcement
View

Southwest Largest EPS Surprises

Earnings surprises can significantly impact Southwest Airlines' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2013-01-24
2012-12-310.080.090.0112 
2012-01-19
2011-12-310.080.090.0112 
2009-10-15
2009-09-300.020.030.0150 
View All Earnings Estimates

Southwest Airlines Thematic Classifications

In addition to having Southwest Airlines stock in your portfolios, you can 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 favorite investment opportunity, you can then obtain an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility. If you are a result-oriented investor, you can benefit from optimizing one of our existing themes to build an efficient portfolio against your specific investing outlook.
Airlines Idea
Airlines
Major domestic and international airlines
Impulse Idea
Impulse
Macroaxis evolving impulse stocks

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 originate 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 Inc2023-12-31
8.2 M
Wellington Management Company Llp2023-12-31
7.9 M
Provident Trust Company2023-12-31
7.6 M
Morgan Stanley - Brokerage Accounts2023-12-31
7.2 M
Us Global Investors Inc2023-12-31
6.2 M
Fmr Inc2023-12-31
5.8 M
Dimensional Fund Advisors, Inc.2023-12-31
5.3 M
Amvescap Plc.2023-12-31
5.3 M
Northern Trust Corp2023-12-31
4.8 M
Vanguard Group Inc2023-12-31
65.4 M
Capital World Investors2023-12-31
53.5 M
Note, although Southwest Airlines' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Southwest Market Capitalization

The company currently falls under 'Large-Cap' category with a total capitalization of 17.42 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Southwest Airlines's market, we take the total number of its shares issued and multiply it by Southwest Airlines's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Southwest Profitablity

Southwest Airlines' profitability indicators refer to fundamental financial ratios that showcase Southwest Airlines' ability to generate income relative to its revenue or operating costs. If, let's say, Southwest Airlines is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Southwest Airlines' executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Southwest Airlines' profitability requires more research than a typical breakdown of Southwest Airlines' financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
The company has Net Profit Margin of 0.02 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.04 %, which entails that for every 100 dollars of revenue, it generated $0.04 of operating income.
Last ReportedProjected for 2024
Return On Capital Employed 0.01  0.01 
Return On Assets 0.01  0.01 
Return On Equity 0.04  0.04 

Management Efficiency

Southwest Airlines has Return on Asset of 0.0153 % which means that on every $100 spent on assets, it made $0.0153 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0439 %, implying that it generated $0.0439 on every 100 dollars invested. Southwest Airlines' management efficiency ratios could be used to measure how well Southwest Airlines manages its routine affairs as well as how well it operates its assets and liabilities. Return On Capital Employed is likely to drop to 0.01 in 2024. Return On Assets is likely to drop to 0.01 in 2024. At this time, Southwest Airlines' Total Assets are fairly stable compared to the past year. Non Current Assets Total is likely to climb to about 23.7 B in 2024, whereas Other Current Assets are likely to drop slightly above 295.3 M in 2024.
Last ReportedProjected for 2024
Price Book Value Ratio 1.76  1.91 
Enterprise Value Multiple 7.89  8.29 
Price Fair Value 1.76  1.91 
The analysis of Southwest Airlines' management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Southwest Airlines' future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Southwest Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0247
Forward Dividend Yield
0.0247
Forward Dividend Rate
0.72
Beta
1.163

Technical Drivers

As of the 29th of March, Southwest Airlines has the Risk Adjusted Performance of 0.014, semi deviation of 2.98, and Coefficient Of Variation of 9161.38. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Southwest Airlines, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We are able to break down and analyze data for nineteen technical drivers for Southwest Airlines, which can be compared to its competition. Please validate Southwest Airlines information ratio and downside variance to decide if Southwest Airlines is priced more or less accurately, providing market reflects its prevalent price of 29.19 per share. Given that Southwest Airlines has jensen alpha of (0.08), we advise you to double-check Southwest Airlines's current market performance to make sure the company can sustain itself at a future point.

Southwest Airlines Price Movement Analysis

Execute Study
Incorrect Input. Please change your parameters or increase the time horizon required for running this function. The output start index for this execution was zero with a total number of output elements of zero. The Bollinger Bands is very popular indicator that was developed by John Bollinger. It consist of three lines. Southwest Airlines middle band is a simple moving average of its typical price. The upper and lower bands are (N) standard deviations above and below the middle band. The bands widen and narrow when the volatility of the price is higher or lower, respectively. The upper and lower bands can also be interpreted as price targets for Southwest Airlines. When the price bounces off of the lower band and crosses the middle band, then the upper band becomes the price target.

Southwest Airlines Outstanding Bonds

Southwest Airlines issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Southwest Airlines uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Southwest bonds can be classified according to their maturity, which is the date when Southwest Airlines has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Southwest Airlines Predictive Daily Indicators

Southwest Airlines intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Southwest Airlines stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Southwest Airlines Corporate Filings

8K
12th of March 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
13A
8th of March 2024
An amended filing to the original Schedule 13G
ViewVerify
F4
23rd of February 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
13A
13th of February 2024
An amended filing to the original Schedule 13G
ViewVerify
13A
12th of February 2024
An amended filing to the original Schedule 13G
ViewVerify
13A
9th of February 2024
The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934
ViewVerify
ASR
7th of February 2024
Automatic Shelf Registration Statement under Rule 415 filed with the U.S. Securities and Exchange Commission (SEC)
ViewVerify
8K
6th of February 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify

Southwest Airlines Forecast Models

Southwest Airlines' time-series forecasting models are one of many Southwest Airlines' stock analysis techniques aimed at predicting future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Southwest Airlines' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

About Southwest Stock Analysis

Stock analysis is the technique used by a trader or investor to examine and evaluate how Southwest Airlines prices is reacting to, or reflecting on a current market direction and economic conditions. It can be used to make informed decisions about market timing, and when buying or selling Southwest shares will generate the highest return on investment. We also built our stock analysis module to help investors to gain an insight into the world economy as a whole, the stock market, thematic ideas. a specific sector, or an individual Stock such as Southwest Airlines. By using and applying Southwest Stock analysis, traders can create a robust methodology for identifying Southwest entry and exit points for their positions.
Last ReportedProjected for 2024
Pretax Profit Margin 0.02  0.02 
Operating Profit Margin 0.01  0.01 
Net Profit Margin 0.02  0.02 
Gross Profit Margin 0.16  0.15 

Current Southwest Analysis - Recommendations

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Southwest analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Southwest analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target PriceAdvice# of Analysts
30.77Hold21Odds
Southwest Airlines current and past analyst recommendations published by a number of research institutions as well as average analyst consensus.
Most Southwest analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to helps potential investors understand Southwest stock's fair price compared to its market value. Analysts arrive at stock ratings after researching public financial statements of Southwest Airlines, talking to its executives and customers, or listening to Southwest conference calls.
Southwest Analyst Advice Details

Southwest Stock Analysis Indicators

Southwest Airlines stock analysis indicators help investors evaluate how Southwest Airlines stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing and determine when trading Southwest Airlines shares will generate the highest return on investment. By understating and applying Southwest Airlines stock analysis, traders can identify Southwest Airlines position entry and exit signals to maximize returns.
Begin Period Cash Flow9.5 B
Long Term DebtB
Common Stock Shares Outstanding640 M
Total Stockholder Equity10.5 B
Tax Provision137 M
Quarterly Earnings Growth Y O Y-0.299
Property Plant And Equipment Net20.6 B
Cash And Short Term Investments11.5 B
Cash9.3 B
Accounts Payable265 M
Net Debt-88 M
50 Day M A31.4408
Total Current Liabilities12.3 B
Other Operating Expenses25.9 B
Non Current Assets Total22.5 B
Forward Price Earnings19.8413
Non Currrent Assets Other-1.7 B
Stock Based Compensation-4 M
When determining whether Southwest Airlines is a strong investment it is important to analyze Southwest Airlines' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Southwest Airlines' future performance. For an informed investment choice regarding Southwest Stock, refer to the following important reports:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Southwest Airlines. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment.
For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide.
You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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.