Unusual number of Southwest Airline (LUV, $54.82) flights cancelled over maintenance issues
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.
LUV in upward trend: 10-day moving average moved above 50-day moving average on December 01, 2023
The 10-day moving average for LUV crossed bullishly above the 50-day moving average on December 01, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 10, 2023. You may want to consider a long position or call options on LUV as a result. In of 85 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 November 03, 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 .
LUV moved above its 50-day moving average on November 29, 2023 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 291 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 191 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 RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 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 .
LUV broke above its upper Bollinger Band on December 01, 2023. 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.
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 (1.339) is normal, around the industry mean (105.528). LUV has a moderately high P/E Ratio (30.675) as compared to the industry average of (14.259). Projected Growth (PEG Ratio) (0.323) is also within normal values, averaging (0.438). Dividend Yield (0.029) settles around the average of (0.041) among similar stocks. P/S Ratio (0.623) is also within normal values, averaging (0.962).
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 91, 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 75% 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.