Southwest Airlines (LUV) Strong In Pre-Market Trading
- LUV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $167.3 million.
- LUV traded 21,897 shares today in the pre-market hours as of 8:30 AM.
- LUV is up 4.3% today from yesterday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in LUV with the Ticky from Trade-Ideas. See the FREE profile for LUV NOW at Trade-Ideas More details on LUV: Southwest Airlines Co. operates passenger airlines that provide scheduled air transportation services in the United States. As of December 31, 2012, the company operated 694 aircraft, including 606 Boeing 737 aircraft and 88 Boeing 717 aircraft. The stock currently has a dividend yield of 0.9%. LUV has a PE ratio of 23.2. Currently there are 10 analysts that rate Southwest Airlines a buy, 2 analysts rate it a sell, and 1 rates it a hold. The average volume for Southwest Airlines has been 6.0 million shares per day over the past 30 days. Southwest Airlines has a market cap of $19.4 billion and is part of the services sector and transportation industry. The stock has a beta of 0.94 and a short float of 2.4% with 2.38 days to cover. Shares are up 48.9% year-to-date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Southwest Airlines as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- The revenue growth significantly trails the industry average of 43.9%. Since the same quarter one year prior, revenues slightly increased by 2.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 175.00% and other important driving factors, this stock has surged by 101.53% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- SOUTHWEST AIRLINES reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SOUTHWEST AIRLINES increased its bottom line by earning $1.06 versus $0.56 in the prior year. This year, the market expects an improvement in earnings ($1.65 versus $1.06).
- Net operating cash flow has increased to $1,119.00 million or 13.83% when compared to the same quarter last year. Despite an increase in cash flow of 13.83%, SOUTHWEST AIRLINES is still growing at a significantly lower rate than the industry average of 64.92%.
- The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that LUV's debt-to-equity ratio is low, the quick ratio, which is currently 0.61, displays a potential problem in covering short-term cash needs.
- You can view the full Southwest Airlines Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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