Near term Outlook For Southwest Airlines Co. (NYSE:LUV)

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Southwest Airlines Co. (NYSE:LUV) closed its last session at $64.84. The stock traded within a range of $63.31 and $65.55. The company operates in the Industrials sector with a market capitalization of 38.7 Million. Trading volume for Southwest Airlines Co. was 5.36 Million in its previous trading session. Currently, Southwest Airlines Co. (NYSE:LUV) has an average volume of 4.72 Million.

Company Profile

Southwest Airlines (NYSE:LUV ) is a major domestic airline headquartered in Dallas, Texas. The company  provides primarily shorthaul, high-frequency, point-to-point, low-fare service.  Southwest operates over Boeing 737 aircraft in numerous cities. Southwest has the lowest operating cost structure in the domestic airline industry and consistently offers the lowest and simplest fares. Southwest also has one of the best overall Customer Service records.

Analyst Views

Southwest Airlines Co. (NYSE:LUV) received a Buy rating from 6 analysts. 0 analysts gave its stock an Outperform rating. 1 analysts say it’s a Hold while 0 analysts provided their expert opinion as Sell.

Southwest Airlines Co. (NYSE:LUV) touched its 1-Year High price of $66.99 on 12/21/17 and its 1-Year Low price of $48.71 on 01/25/17.

EPS & Financials

Southwest Airlines Co. (NYSE:LUV) reported its EPS in the last quarter as $0.88/Share beating the analyst estimate of $0.87/Share by a difference of $0.01. This showed a surprise of 1.1% in the last quarter earnings.

For the current quarter, 18 analysts are projecting a mean EPS of $0.77/share. According to their observations and findings, the stock could provide a high EPS of $0.9/share and a low EPS of $0.69/share.

Analysts believe that the company has the potential to earn average revenue of $5.25 Billion for the current quarter. According to their predictions high & low revenue estimates are 5.27 Billion and 5.22 Billion respectively.

Technical Analysis

By taking a look at the stock’s current statistics it can gauged that the stock candle is BULLISH with MEDIUM volatility. Southwest Airlines Co. (NYSE:LUV) has a 20-Day average volume of 4.29 Million. According to today’s trading volume Southwest Airlines Co. is ABOVE its 20-Day Avg. volume with the stock showing ABOVE Abnormal volume in the past 150 days.

Moving average convergence divergence (MACD) shows that the stock is on a PRICE RELATIVITY trend. The trend for the past 10-days shows that the company was in BEARISH territory while an analysis of the last 40-Day trend shows a BULLISH signal. The 100-Day trend also shows a BULLISH trend as well.

The company currently has an insider ownership of 0.19 Percent and Institutional ownership of 79.6 Percent. The return on assets stands at 8.9%, Return on Equity currently is 25% and the Return on Investment value is 20.6%.

Southwest Airlines Co. (NYSE:LUV) gross margin percentage stands at 68.5% while its operating margin for the past trailing twelve month is 17.1 percent and its overall profit margin (ttm) is 10.1 Percent. The stock is currently moving below its 20-Day Simple Moving Average of -0.07% with a 50-Day Simple Moving Average of 8.27 percent. As of today, the company has a SMA200 (200-day simple moving average) of 12.07 Percent. The Stock has YTD (year to date) performance of -0.93 percent.

The TTM operating margin for the company stands at 17.1%. The return on invested capital is at 20.6%, which is good, compared to its peers. The Free Cash Flow or FCF margin is 10.61.

The company’s stock is currently moving with a +ve distance from the 200 day SMA of approximately 12.07%, and has a solid year to date (YTD) performance of -0.93% which means that the stock is constantly adding to its value from the previous fiscal year end price.