Southwest (LUV) Stock Down, Applying For New Nonstop Mexico Service

Southwest (LUV) filed an application to be the first U.S. carrier to fly nonstop to two Mexican airports.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Southwest Airlines (LUV) - Get Report  stock is down 0.75% to $42.52 this afternoon despite announcing that it had filed an application with the U.S. Department of Transportation for a new nonstop service to Mexico.

The Dallas-based airline operator is hoping to provide nonstop flights between Oakland International Airport and both San Jose del Cabo and Puerto Vallarta, Mexico.

Southwest hopes to begin service in February 2017, pending government approvals. It will be the first U.S. carrier to fly direct to those destinations.

Leah Koontz, Southwest VP, said in a press release that the new service is "an exciting addition to [Southwest's] growing international portfolio."

Southwest transports the "majority" of the San Francisco-area airport's 11 million annual travelers.

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B+.

The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, increase in net income, expanding profit margins and good cash flow from operations.

TheStreet Ratings feels its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

You can view the full analysis from the report here: LUV

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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