Southwest Airlines Gains 68.9% YTD with A Momentum Score and Strong Buy Rank
Southwest Airlines holds a Momentum Style Score of A and a Zacks Rank of #1 after shares rallied 13.3% over the past week and 68.9% year-to-date. Analysts raised full-year earnings estimates from $2.77 to $4.13 following seven upward revisions in the last two months.
1. Momentum Style Score and Zacks Rank
Southwest Airlines currently holds a Momentum Style Score of A, reflecting strong price trends and positive earnings estimate revisions. The stock is also rated Zacks Rank #1 (Strong Buy), a designation awarded to top-ranked stocks expected to outperform over the next month.
2. Recent Price Performance
Shares of Southwest Airlines have advanced 13.28% over the past week and 22.34% over the past month. Longer-term gains include a 58.93% increase over the past quarter and a 68.9% rise year-to-date, significantly outpacing both the Zacks Transportation–Airline industry and the S&P 500.
3. Earnings Estimate Revisions
Analysts have revised full-year earnings estimates upward from $2.77 to $4.13 over the past two months, driven by seven upward revisions and none lower. For the next fiscal year, four estimates moved higher with no downward changes, underscoring improving profit expectations.
4. Implications for Investors
The combination of robust price momentum, heavy trading volume averaging over 10.4 million shares daily, and upward earnings revisions supports the view that Southwest Airlines may continue its upward trajectory. Momentum investors may view these trends as signals for potential short-term gains.