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.
LUV's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for LUV turned positive on May 18, 2023. Looking at past instances where LUV's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where LUV's RSI Oscillator exited the oversold zone, of 32 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on June 02, 2023. You may want to consider a long position or call options on LUV as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LUV advanced for three days, in of 299 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where LUV's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for LUV entered a downward trend on May 23, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
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 (1.737) is normal, around the industry mean (83.325). P/E Ratio (28.090) is within average values for comparable stocks, (22.085). Projected Growth (PEG Ratio) (0.264) is also within normal values, averaging (0.450). Dividend Yield (0.012) settles around the average of (0.041) among similar stocks. P/S Ratio (0.778) is also within normal values, averaging (1.092).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. LUV’s price grows at a lower rate over the last 12 months as compared to 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 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 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 93, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of scheduled air transportation services
Industry Airlines
LUV and
Correlation & Price change
A.I.dvisor indicates that over the last year, LUV has been closely correlated with ALK. These tickers have moved in lockstep 81% of the time. This A.I.-generated data suggests there is a high statistical probability that if LUV jumps, then ALK could also see price increases.
