Southwest Airlines is experiencing some difficulties as 100 of its flights were recently cancelled, more than any other U.S. airline, and more than 1,000 delayed over maintenance issues. As a result, the airline has announced an ‘operational emergency’ due to the unusual number of grounded jets.
Generally, the company plans to have as many as 20 aircraft removed from service for unexpected maintenance issues every day. 'Hundreds' is a different story altogether, and signals bigger problems at the airline.
This means that the percentage of out-of-service aircrafts among its available fleet of about 750 Boeing 737s has been at least double the daily average.
The airline has subsequently announced a re-haul of its mechanics to address the maintenance items and quickly return aircraft to service. Reportedly, the company has given an ultimatum to its mechanics saying that they must turn in a doctor’s certificate if alleging illness or risk losing their job.
Further, vacations will only be available to those mechanics whose requests have already been approved. For now, the airline will assign them overtime.
On Saturday, 39 Southwest flights were cancelled, more than other airlines, according to FlightAware.
The RSI Indicator for LUV moved out of oversold territory on May 02, 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 36 similar instances when the indicator left oversold territory. In of the 36 cases the stock moved higher. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on May 09, 2024. You may want to consider a long position or call options on LUV as a result. In of 89 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 May 08, 2024. Looking at past instances where LUV's MACD turned positive, the stock continued to rise in of 51 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 287 cases, the price rose further within the following month. The odds of a continued upward trend are .
LUV may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for LUV moved below the 200-day moving average on May 15, 2024. 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 .
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 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 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 (1.635) is normal, around the industry mean (16.445). P/E Ratio (43.531) is within average values for comparable stocks, (52.381). Projected Growth (PEG Ratio) (0.631) is also within normal values, averaging (0.754). Dividend Yield (0.026) settles around the average of (0.030) among similar stocks. P/S Ratio (0.668) is also within normal values, averaging (2.158).
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 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