Southwest Airlines (UK) Buy Hold or Sell Recommendation
| 0L8F Stock | 32.52 0.36 1.12% |
Assuming the 90 days trading horizon and your typical level of risk aversion, our recommendation regarding Southwest Airlines Co is 'Strong Sell'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell Southwest Airlines Co given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for Southwest Airlines Co, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out Southwest Airlines Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide. Note, we conduct extensive research on individual companies such as Southwest and provide practical buy, sell, or hold advice based on investors' constraints. Southwest Airlines Co. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Southwest |
Execute Southwest Airlines Buy or Sell Advice
The Southwest recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Southwest Airlines Co. Macroaxis does not own or have any residual interests in Southwest Airlines Co or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Southwest Airlines' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Above Average | Details | |
Economic Sensitivity | Almost neglects market trends | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Southwest Airlines Trading Alerts and Improvement Suggestions
| Southwest Airlines has high likelihood to experience some financial distress in the next 2 years | |
| Over 91.0% of the company shares are owned by institutions such as pension funds | |
| Latest headline from news.google.com: Nuance Investments LLC Has 20.78 Million Holdings in Southwest Airlines Co. - MarketBeat |
Southwest Airlines Returns Distribution Density
The distribution of Southwest Airlines' historical returns is an attempt to chart the uncertainty of Southwest Airlines' future price movements. The chart of the probability distribution of Southwest Airlines daily returns describes the distribution of returns around its average expected value. We use Southwest Airlines Co price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Southwest Airlines returns is essential to provide solid investment advice for Southwest Airlines.
| Mean Return | 0.21 | Value At Risk | -3.17 | Potential Upside | 3.16 | Standard Deviation | 2.01 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Southwest Airlines historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Southwest Airlines Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 694M | 8.5B | 1.4B | (3.0B) | (204M) | (193.8M) | |
| Free Cash Flow | 3.0B | (1.6B) | 1.8B | (156M) | (389M) | (369.6M) | |
| Depreciation | 1.0B | 1.1B | 1.3B | 1.4B | 1.5B | 1.6B | |
| Other Non Cash Items | 684M | 1.2B | 169M | 51M | (231M) | (219.5M) | |
| Dividends Paid | 332M | 372M | 188M | 428M | 492.2M | 516.8M | |
| Capital Expenditures | 1.0B | 515M | 511M | 3.9B | 3.6B | 3.7B | |
| Net Income | 2.3B | (3.1B) | 977M | 539M | 465M | 653.7M | |
| End Period Cash Flow | 2.5B | 11.1B | 12.5B | 9.5B | 9.3B | 9.8B | |
| Change To Inventory | (204M) | 63M | 663M | (77M) | (88.6M) | (84.1M) | |
| Investments | 324M | (744M) | (753M) | 200M | 180M | 189M | |
| Net Borrowings | (615M) | 8.1B | 524M | (2.4B) | (2.2B) | (2.1B) | |
| Change To Netincome | (138M) | (977M) | 173M | 417M | 479.6M | 503.5M |
Southwest Airlines Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Southwest Airlines or Commercial Services & Supplies sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Southwest Airlines' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Southwest stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.25 | |
β | Beta against Dow Jones | -0.4 | |
σ | Overall volatility | 2.01 | |
Ir | Information ratio | 0.04 |
Southwest Airlines Volatility Alert
Southwest Airlines Co currently demonstrates below-average downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.25. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Southwest Airlines' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Southwest Airlines' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Southwest Airlines Fundamentals Vs Peers
Comparing Southwest Airlines' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Southwest Airlines' direct or indirect competition across all of the common fundamentals between Southwest Airlines and the related equities. This way, we can detect undervalued stocks with similar characteristics as Southwest Airlines or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Southwest Airlines' fundamental indicators could also be used in its relative valuation, which is a method of valuing Southwest Airlines by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Southwest Airlines to competition |
| Fundamentals | Southwest Airlines | Peer Average |
| Return On Equity | -0.0045 | -0.31 |
| Return On Asset | 0.0046 | -0.14 |
| Profit Margin | (0) % | (1.27) % |
| Operating Margin | 0 % | (5.51) % |
| Current Valuation | 19.12 B | 16.62 B |
| Shares Outstanding | 562.31 M | 571.82 M |
| Shares Owned By Insiders | 0.35 % | 10.09 % |
| Shares Owned By Institutions | 90.80 % | 39.21 % |
| Price To Sales | 0.64 X | 11.42 X |
| Revenue | 26.09 B | 9.43 B |
| Gross Profit | 5.98 B | 27.38 B |
| EBITDA | 2.39 B | 3.9 B |
| Net Income | 465 M | 570.98 M |
| Total Debt | 9.2 B | 5.32 B |
| Book Value Per Share | 17.36 X | 1.93 K |
| Cash Flow From Operations | 3.16 B | 971.22 M |
| Earnings Per Share | 0.97 X | 3.12 X |
| Number Of Employees | 73.46 K | 18.84 K |
| Beta | 1.15 | -0.15 |
| Market Capitalization | 1.75 T | 19.03 B |
| Total Asset | 36.49 B | 29.47 B |
| Retained Earnings | 16.3 B | 9.33 B |
| Net Asset | 36.49 B | |
| Last Dividend Paid | 0.72 |
Southwest Airlines Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Southwest . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Southwest Airlines Buy or Sell Advice
When is the right time to buy or sell Southwest Airlines Co? Buying financial instruments such as Southwest Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Additional Tools for Southwest Stock Analysis
When running Southwest Airlines' price analysis, check to measure Southwest Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Southwest Airlines is operating at the current time. Most of Southwest Airlines' value examination focuses on studying past and present price action to predict the probability of Southwest Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southwest Airlines' price. Additionally, you may evaluate how the addition of Southwest Airlines to your portfolios can decrease your overall portfolio volatility.