Is Southwest Airlines Stock a Good Investment?
Southwest Airlines Investment Advice | LUV |
- Examine Southwest Airlines' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Southwest Airlines' leadership team and their track record. Good management can help Southwest Airlines navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Passenger Airlines space and any emerging trends that could impact Southwest Airlines' business and its evolving consumer preferences.
- Compare Southwest Airlines' performance and market position to its competitors. Analyze how Southwest Airlines is positioned in terms of product offerings, innovation, and market share.
- Check if Southwest Airlines pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Southwest Airlines' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Southwest Airlines stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Southwest Airlines is a good investment.
Sell | Buy |
Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Southwest Airlines Stock
Researching Southwest Airlines' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 92.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.84. 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 0.47. The entity recorded a loss per share of 0.08. The firm last dividend was issued on the 26th of December 2024. Southwest Airlines had 3:2 split on the 16th of February 2001.
To determine if Southwest Airlines is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Southwest Airlines' research are outlined below:
| Over 92.0% of the company shares are owned by institutional investors | |
| Latest headline from cnn.com: What to do if your luggage is lost, delayed, stolen or damaged |
Southwest Airlines uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Southwest Airlines. Every quarterly earnings report provides investors with 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 |
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. Below are the table of largest EPS Surprises Southwest Airlines' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2013-01-24 | 2012-12-31 | 0.08 | 0.09 | 0.01 | 12 | ||
2012-01-19 | 2011-12-31 | 0.08 | 0.09 | 0.01 | 12 | ||
2009-10-15 | 2009-09-30 | 0.02 | 0.03 | 0.01 | 50 | ||
2009-07-21 | 2009-06-30 | 0.07 | 0.08 | 0.01 | 14 | ||
2006-04-20 | 2006-03-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2005-01-19 | 2004-12-31 | 0.08 | 0.07 | -0.01 | 12 | ||
2002-10-17 | 2002-09-30 | 0.05 | 0.06 | 0.01 | 20 | ||
1997-01-23 | 1996-12-31 | 0.03 | 0.04 | 0.01 | 33 |
Know Southwest Airlines' Top 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 | Artisan Partners Limited Partnership | 2024-09-30 | 10.9 M | Ameriprise Financial Inc | 2024-06-30 | 9.6 M | Ubs Group Ag | 2024-06-30 | 8.8 M | Amvescap Plc. | 2024-06-30 | 7.6 M | American Century Companies Inc | 2024-09-30 | 6.6 M | Elliott Investment Management Lp | 2024-06-30 | 6 M | Fmr Inc | 2024-09-30 | 6 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 5.7 M | Jpmorgan Chase & Co | 2024-06-30 | 5.1 M | Vanguard Group Inc | 2024-09-30 | 68.2 M | Capital World Investors | 2024-09-30 | 57.5 M |
Southwest Airlines' market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 19.17 B.Market Cap |
|
Southwest Airlines' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.01 | 0.01 | |
| Return On Capital Employed | 0.01 | 0.01 | |
| Return On Assets | 0.01 | 0.01 | |
| Return On Equity | 0.04 | 0.04 |
Determining Southwest Airlines' profitability involves analyzing its financial statements and using various financial metrics to determine if Southwest Airlines is a good buy. For example, gross profit margin measures Southwest Airlines' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Southwest Airlines' profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Southwest Airlines' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Southwest Airlines. Check Southwest Airlines' Beneish M Score to see the likelihood of Southwest Airlines' management manipulating its earnings.
Evaluate Southwest Airlines' management efficiency
Return On Tangible Assets is likely to drop to 0.01 in 2024. Return On Capital Employed 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 321.6 M in 2024. 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.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 17.67 | 18.56 | |
| Tangible Book Value Per Share | 15.54 | 16.32 | |
| Enterprise Value Over EBITDA | 7.15 | 4.59 | |
| Price Book Value Ratio | 1.63 | 1.91 | |
| Enterprise Value Multiple | 7.15 | 4.59 | |
| Price Fair Value | 1.63 | 1.91 | |
| Enterprise Value | 22.6 B | 23.8 B |
Southwest Airlines benefits from a management team that prioritizes both innovation and efficiency. We analyze these priorities to gauge the stock's future performance.
Dividend Yield 0.0225 | Forward Dividend Yield 0.0225 | Forward Dividend Rate 0.72 | Beta 1.153 |
Basic technical analysis of Southwest Stock
As of the 26th of November, Southwest Airlines has the Risk Adjusted Performance of 0.1211, coefficient of variation of 666.43, and Semi Deviation of 1.6. 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. 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 32.43 per share. Given that Southwest Airlines has jensen alpha of 0.1861, 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' Outstanding Corporate 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.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| SOUTHWEST AIRLS 7375 Corp BondUS844741AN81 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| SOUTHWEST AIRLINES CO Corp BondUS844741BK34 | View | |
| US844741BG22 Corp BondUS844741BG22 | View | |
| SOUTHWEST AIRLS 525 Corp BondUS844741BJ60 | View | |
| SOUTHWEST AIRLS 3 Corp BondUS844741BC18 | View | |
| US844741BF49 Corp BondUS844741BF49 | View |
Understand Southwest Airlines' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Southwest Airlines' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1211 | |||
| Market Risk Adjusted Performance | 0.3771 | |||
| Mean Deviation | 1.39 | |||
| Semi Deviation | 1.6 | |||
| Downside Deviation | 2.05 | |||
| Coefficient Of Variation | 666.43 | |||
| Standard Deviation | 1.92 | |||
| Variance | 3.67 | |||
| Information Ratio | 0.0818 | |||
| Jensen Alpha | 0.1861 | |||
| Total Risk Alpha | (0.02) | |||
| Sortino Ratio | 0.0762 | |||
| Treynor Ratio | 0.3671 | |||
| Maximum Drawdown | 10.99 | |||
| Value At Risk | (2.65) | |||
| Potential Upside | 3.18 | |||
| Downside Variance | 4.22 | |||
| Semi Variance | 2.57 | |||
| Expected Short fall | (1.37) | |||
| Skewness | (0.15) | |||
| Kurtosis | 1.26 |
| Risk Adjusted Performance | 0.1211 | |||
| Market Risk Adjusted Performance | 0.3771 | |||
| Mean Deviation | 1.39 | |||
| Semi Deviation | 1.6 | |||
| Downside Deviation | 2.05 | |||
| Coefficient Of Variation | 666.43 | |||
| Standard Deviation | 1.92 | |||
| Variance | 3.67 | |||
| Information Ratio | 0.0818 | |||
| Jensen Alpha | 0.1861 | |||
| Total Risk Alpha | (0.02) | |||
| Sortino Ratio | 0.0762 | |||
| Treynor Ratio | 0.3671 | |||
| Maximum Drawdown | 10.99 | |||
| Value At Risk | (2.65) | |||
| Potential Upside | 3.18 | |||
| Downside Variance | 4.22 | |||
| Semi Variance | 2.57 | |||
| Expected Short fall | (1.37) | |||
| Skewness | (0.15) | |||
| Kurtosis | 1.26 |
Consider Southwest Airlines' intraday 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.
| Accumulation Distribution | 53087.44 | |||
| Daily Balance Of Power | 1.069767 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 32.44 | |||
| Day Typical Price | 32.43 | |||
| Price Action Indicator | 0.23 | |||
| Period Momentum Indicator | 0.46 |
Southwest Airlines Corporate Filings
F4 | 22nd of November 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 |
| 21st of November 2024 Other Reports | ViewVerify | |
| 12th of November 2024 Other Reports | ViewVerify | |
8K | 7th of November 2024 An amendment to a previously filed Form 8-K | ViewVerify |
Southwest Stock media impact
Far too much social signal, news, headlines, and media speculation about Southwest Airlines that are available to investors today. That information is available publicly through Southwest media outlets and privately through word of mouth or via Southwest internal channels. However, regardless of the origin, that massive amount of Southwest data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Southwest Airlines news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Southwest Airlines relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Southwest Airlines' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Southwest Airlines alpha.
Southwest Airlines Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Southwest Airlines can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
All about airplane boarding
recently @ www.yahoo.com
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Southwest Airlines Historical Investor Sentiment
Investor biases related to Southwest Airlines' public news can be used to forecast risks associated with an investment in Southwest. The trend in average sentiment can be used to explain how an investor holding Southwest can time the market purely based on public headlines and social activities around Southwest Airlines. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Southwest Airlines' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Southwest Airlines and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Southwest Airlines news discussions. The higher the estimate score, the more favorable the investor's outlook on Southwest Airlines.
Southwest Airlines Corporate Directors
| Thomas Gilligan | Independent Director | Profile | |
| Nancy Loeffler | Independent Director | Profile | |
| Douglas Brooks | Independent Director | Profile | |
| John Montford | Independent Director | Profile |
Additional 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.