Southwest Airlines Shares Owned By Institutions vs. Price To Book
| LUV Stock | MXN 680.00 3.00 0.44% |
For Southwest Airlines profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Southwest Airlines to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Southwest Airlines utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Southwest Airlines's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Southwest Airlines over time as well as its relative position and ranking within its peers.
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Southwest Airlines Price To Book vs. Shares Owned By Institutions Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Southwest Airlines's current stock value. Our valuation model uses many indicators to compare Southwest Airlines value to that of its competitors to determine the firm's financial worth. Southwest Airlines is rated third overall in shares owned by institutions category among its peers. It is rated fifth overall in price to book category among its peers fabricating about 0.03 of Price To Book per Shares Owned By Institutions. The ratio of Shares Owned By Institutions to Price To Book for Southwest Airlines is roughly 37.04 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Southwest Airlines by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Southwest Airlines' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Southwest Price To Book vs. Shares Owned By Institutions
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
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| = | 76.43 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
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| = | 2.06 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Southwest Price To Book Comparison
Southwest Airlines is rated fourth overall in price to book category among its peers.
Southwest Airlines Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Southwest Airlines, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Southwest Airlines will eventually generate negative long term returns. The profitability progress is the general direction of Southwest Airlines' change in net profit over the period of time. It can combine multiple indicators of Southwest Airlines, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets. The company was founded in 1967 and is headquartered in Dallas, Texas. SOUTHWEST AIRLINES operates under Airlines classification in Mexico and is traded on Mexico Stock Exchange. It employs 54448 people.
Southwest Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Southwest Airlines. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Southwest Airlines position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Southwest Airlines' important profitability drivers and their relationship over time.
Use Southwest Airlines in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Southwest Airlines position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Southwest Airlines will appreciate offsetting losses from the drop in the long position's value.Southwest Airlines Pair Trading
Southwest Airlines Pair Trading Analysis
The ability to find closely correlated positions to Southwest Airlines could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Southwest Airlines when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Southwest Airlines - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Southwest Airlines to buy it.
The correlation of Southwest Airlines is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Southwest Airlines moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Southwest Airlines moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Southwest Airlines can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Southwest Airlines position
In addition to having Southwest Airlines in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Money Market Funds Thematic Idea Now
Money Market Funds
Funds or Etfs investing in various types of short-term (less than one year) fixed income instruments of high-quality and liquidity. The Money Market Funds theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Money Market Funds Theme or any other thematic opportunities.
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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.