Alert: Negative Investment/Fundamental Signals (5/1/24)-Southwest Airlines Co. (NYSE: LUV)

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Recent extremely meaningful negative changes in investment behavior have impacted Southwest Airlines Co. (NYSE: LUV): the stock’s recent price decline challenged its longer term uptrend, and negative upside/downside volume developed.

Southwest Airlines Co. (NYSE: LUV) has recently experienced important negative changes in fundamentals: the consensus estimate for December, 2024 decreased significantly, and the consensus estimate for December, 2025 decreased significantly.

In light of these highly negative signals we are reviewing our current Overall Rating of C. We would view the shares with caution pending completion of this review in the next several days.

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Current PriceTarget Research Rating

With future capital returns forecasted to be above the cost of capital, LUV is expected to continue to be an important Value Builder.

Southwest Airlines Co has a current Value Trend Rating of C (Low Neutral). The Value Trend Rating reflects consistent signals from PTR’s two proprietary measures of a stock’s attractiveness. Southwest Airlines Co has a neutral Appreciation Score of 55 and a slightly negative Power Rating of 39, leading to the Low Neutral Value Trend Rating.

Recent Price Action

Southwest Airlines Co. (NYSE: LUV) stock declined modestly by -1.0% on 5/1/24. The stock closed at $25.67. Moreover, this decline was accompanied by above average trading volume at 134% of normal. The stock has performed in line with the market over the last nine months and has declined -12.9% during the last week.

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