Southwest Airlines ( LUV, $28.31) expects improved demand and load factor for May
Southwest Airlines reported improved demand and load factor in May - according to a regulatory filing.
The airline mentioned, in a Securities and Exchange Commission filing, that its operating revenue for April declined 90% to 95% and load factor was about 8% due to the COVID-19 pandemic’s impact on air travel.
However, the company said it experienced "modest improvement" in passenger demand, bookings and trip cancellations in May, leading to net positive bookings through May 18.
Southwest expects May operating revenue to fall 85% to 90% and estimates load factor to be 25% to 30%, compared with previous outlook for a 90%-to-95% decline in operating revenue and load factor of 5% to 10%.
Southwest continues to expect its average daily core cash spending to be in the range of $30 million to $35 million in the second quarter of 2020. For June, it projects its daily cash burn rate to be “in the low-$20 million range.”
LUV in upward trend: price may ascend as a result of having broken its lower Bollinger Band on October 24, 2024
LUV may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 45 cases where LUV's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
LUV moved above its 50-day moving average on October 25, 2024 date and that indicates a change from a downward trend to an upward trend.
The 50-day moving average for LUV moved above the 200-day moving average on October 17, 2024. This could be a long-term bullish signal for the stock as the stock shifts 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 289 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 178 cases where LUV Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 59 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 .
The Momentum Indicator moved below the 0 level on October 24, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on LUV as a result. In of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for LUV turned negative on October 14, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 (1.696) is normal, around the industry mean (3.761). LUV has a moderately high P/E Ratio (227.923) as compared to the industry average of (41.175). Projected Growth (PEG Ratio) (0.447) is also within normal values, averaging (0.613). Dividend Yield (0.024) settles around the average of (0.039) among similar stocks. P/S Ratio (0.704) is also within normal values, averaging (1.458).
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.
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General Information
a provider of scheduled air transportation services
Industry Airlines