LUV Stock Available At Discounted Price, Is It A Good Buy?

• The Southwest Airlines Company has yielded a dividend of 3.24% till date.
• The LUV Stock has lost its value by more than 20% in just one month.

The Southwest Airlines Company operates in the airline transportation sector and is known to be America’s one of the cheapest airline companies. It was founded in the year 1967 and the CEO of the company is Robert E. Jordan. The company has 66.656K employees and has its headquarters in Dallas.

The LUV stock is following a 52-week range of $21.92-$40.38. The company yielded a dividend of 0.53% in 2022. Also, the current market cap of the LUV stock is $13.408B following a PE ratio of 30.73. The following ratio represents that the stock price is fairly valued. The basic EPS of the LUV stock is 0.83 USD which denotes the amount of money the company is making on its each share. The LUV stock also has 593.131M shares floating in the market available for trading.

The current debt/equity ratio of the stock is 86.46% which is a very good number. This represents that the company is managing its debt very well. Following this Southwest Airlines also has a very good PB ratio of 1.23.

Southwest Airlines Company Stock Performance Analysis

The Southwest Airlines Company has released its Q3 2023 earnings recently. In the following report, the company reported an advance of 4.9% in its revenue YOY. This has resulted in $6.53B but the market cap has declined by 11.9%. The company reported a revenue of $23.81B throughout the year 2022.

No Sign Of Buying On LUV Stock Chart, How Further Will The Share Price Decline?

The Southwest Airlines Company is following a very strong downtrend and has lost its value by more than 65% from its all-time high price. The stock price is still following a very strong downtrend making lower low swing patterns.  The LUV stock price is still forming strong bearish candles and is declining without any retracement. This denotes how powerfully the sellers have dominated the stock price.

The LUV stock has declined by more than 15% from the 50-day EMA. The 200-day EMA is also trading above the 50-EMA representing a death cross indicating a downtrend on the charts. The RSI for the LUV stock on the daily charts is extremely bearish consistently trading below the oversold zones.

Conclusion

The LUV stock price is consistently declining from the higher levels. One of the main reasons for the price decline could be that the stock was unable to meet the estimated revenue. Thus, the share price might continue to decline to further lows.

Technical Levels

• Support levels- $7.30 and $14.70
• Resistance levels- $29.70 and $37.60

Disclaimer

The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.