Southwest Airlines Co (LUV): Today's Featured Transportation Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Southwest Airlines (LUV) pushed the Transportation industry lower today making it today's featured Transportation laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Southwest Airlines fell 14 cents (-1.5%) to $9.32 on average volume. Throughout the day, 8.2 million shares of Southwest Airlines exchanged hands as compared to its average daily volume of 10.2 million shares. The stock ranged in price between $9.29-$9.46 after having opened the day at $9.44 as compared to the previous trading day's close of $9.46. Other companies within the Transportation industry that declined today were: DS Torm (TRMD), down 7.4%, Republic Airways Holdings (RJET), down 6.7%, Frozen Food Express Industries (FFEX), down 5.8%, and YRC Worldwide (YRCW), down 5.3%.

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Southwest Airlines Co. engages in the operation of a passenger airline that provides scheduled air transportation in the United States. Southwest Airlines has a market cap of $6.76 billion and is part of the services sector. The company has a P/E ratio of 21.5, above the average transportation industry P/E ratio of 20.2 and above the S&P 500 P/E ratio of 17.7. Shares are up 6.7% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Southwest Airlines a buy, one analyst rates it a sell, and five rate it a hold.

TheStreet Ratings rates Southwest Airlines as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

• You can view the full Southwest Airlines Ratings Report.

• Use our transportation section to find industry-relevant news.
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For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation (IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials (SIJ).

• Find other investment ideas from our top rated ETFs lists.

 

For more information on Southwest Airlines Co click any of the following:

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• Southwest Airlines Co Earnings

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• Southwest Airlines Co Growth Rates

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