7.15% profit from AI Robot's performance contributes to LUV's success last week.
In recent weeks, Swing trader's Downtrend Protection v.2 AI trading robot has been a top performer in our robot factory, generating a 7.15% return for LUV (Southwest Airlines Co.). However, recent technical analysis of the stock shows bearish signals that suggest a potential decline in the future.
One of the key indicators suggesting a bearish outlook for LUV is the Moving Average Convergence Divergence Histogram (MACD), which turned negative on April 26, 2023. When the MACD turns negative, it is generally interpreted as a bearish signal, indicating that the stock could experience a downward move.
To further analyze the probability of a downward move, Tickeron's A.I.dvisor examined 48 instances where the MACD indicator turned negative. The results showed that in 40 out of 48 cases, the stock moved lower in the days following the negative MACD signal. This puts the odds of a downward move for LUV at a high 83%.
Additionally, the latest earnings report on April 27 showed earnings per share of -27 cents, missing the estimate of -23 cents. With 659.99K shares outstanding, the current market capitalization of LUV sits at 18.02B. This earnings miss combined with the bearish technical signals is likely to put pressure on the stock in the near term.
Investors in LUV should remain vigilant and keep a close eye on both technical indicators and earnings reports. While Swing trader's Downtrend Protection v.2 has been a top performer, it is important to remember that past performance is not necessarily indicative of future results.
Momentum Indicator for LUV turns positive, indicating new upward trend
LUV saw its Momentum Indicator move above the 0 level on April 25, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 94 similar instances where the indicator turned positive. In of the 94 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for LUV just turned positive on April 25, 2025. Looking at past instances where LUV's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
LUV moved above its 50-day moving average on May 02, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LUV advanced for three days, in of 293 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 10-day moving average for LUV crossed bearishly below the 50-day moving average on April 08, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
The 50-day moving average for LUV moved below the 200-day moving average on April 22, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LUV declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
LUV broke above its upper Bollinger Band on April 30, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for LUV entered a downward trend on April 30, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LUV’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.897) is normal, around the industry mean (2.634). P/E Ratio (35.034) is within average values for comparable stocks, (23.099). Projected Growth (PEG Ratio) (0.549) is also within normal values, averaging (2.274). Dividend Yield (0.023) settles around the average of (0.035) among similar stocks. P/S Ratio (0.723) is also within normal values, averaging (0.594).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LUV’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock worse than average.
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General Information
a provider of scheduled air transportation services
Industry Airlines