Southwest Airlines EPS Estimates Soar 492% Quarter, 362% Year, Earns Strong Buy
Southwest Airlines' current-quarter EPS estimate rose to $0.51, up 492.3% year-over-year, driving a 30.94% consensus increase over the past 30 days. Strong full-year EPS revisions to $4.30 (+362.4% YOY) and a 27.04% consensus gain have earned the stock a Zacks Rank #1 Strong Buy.
1. Earnings Estimate Revisions
Analysts have lifted Southwest’s current-quarter EPS projection to $0.51, marking a 492.3% year-over-year increase after four upward revisions and one downward move in 30 days, pushing consensus estimates 30.94% higher. For the full year, seven upward revisions and no downgrades over the past month have driven the EPS forecast to $4.30, a 362.4% YOY rise, with consensus up 27.04%.
2. Zacks Rank #1 Strong Buy Rating
These robust estimate revisions have qualified Southwest Airlines for a Zacks Rank #1 (Strong Buy), a designation reserved for companies with the most favorable analyst outlook shifts. Stocks holding this rank have historically outperformed by capitalizing on positive earnings revisions to generate above-market returns.
3. Stock Price Performance
Market response has been strong, with the stock rallying 18.5% over the past four weeks. This price momentum reflects investor confidence in the company’s accelerating earnings outlook and the validation provided by the top-tier Zacks rating.