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.”
The RSI Indicator for LUV moved out of oversold territory on March 27, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 33 similar instances when the indicator left oversold territory. In of the 33 cases the stock moved higher. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on April 17, 2024. You may want to consider a long position or call options on LUV as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for LUV just turned positive on April 08, 2024. Looking at past instances where LUV's MACD turned positive, the stock continued to rise in of 49 cases over the following month. 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 290 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 April 17, 2024. 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 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 (1.667) is normal, around the industry mean (22.106). P/E Ratio (38.553) is within average values for comparable stocks, (28.752). Projected Growth (PEG Ratio) (0.548) is also within normal values, averaging (0.728). Dividend Yield (0.025) settles around the average of (0.030) among similar stocks. P/S Ratio (0.719) is also within normal values, averaging (1.081).
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 94, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of scheduled air transportation services
Industry Airlines