Southwest Airlines Stock Analysis Paper

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Southwest Airlines Stock Analysis, a Good Investment Southwest overview Southwest Airlines (NYSE: LUV) by revenues, a premier carrier in the United States, ranked the nation’s leading domestic airline. Moreover, the firm focusses on low fares, high frequency, short-hauls, and point-to-point services. The pioneer successful budget airline offers, continually, the cheapest tickets, serves over 100 destinations, employed about 55,700 employees and operate a fleet of 706 Boeing airplanes. Based on positive investment convergence measures, this paper will prove LUV stock rating A-, a BUY. Industry outlook. Today, the air transportation industry prospects remain optimistic. As the market rebound, patrons’ benefit from healthy economic growth, firms …show more content…

This ratio compares a given stock's price to its total sales. More so, this value-focused ratio looks at sales, and the lower the number, the better. Some investors favor this metric over the other value-focused ones because it analyzes Sales, something that is much difficult to exploit with accounting techniques than earnings. Currently, Southwest P/S ratio sits around 1.9, which is noticeably less than the S&P 500 average of 3.5 and slightly below the highs for the past few years stock. For this metrics, the carrier ranges near the upper end, which suggests that the firm has already appreciated relative to sales (Appendix B, figure …show more content…

Southwest postponed its inaugural operation to Hawaii until late 2018 early 2019 owing to processing delays with Federal Aviation Administration (FAA). Investors are watching the rising fuel costs because high fuel costs hurt results for the carrier in the first quarter and fuel expenses may continue rising as GDP growth accelerates. However, its hedge portfolio subsidizes the high increases, but as the year advances, fuel costs are likely to change. With the U.S. economy and lower oil prices continually rebounding, Southwest expects consistent growth, evidently from last travel season, albeit threats from terrorism and

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