Thomson Reuters, a distinguished brokerage company, has placed a 52-week price target of $48.55 on Southwest Airlines Company (NYSE:LUV) shares after it surveyed top market analysts. Calculating estimated earnings after taking into consideration different elements, it is predicted to come at $3.84 for the next fiscal and $N/A for underway quarter.
Analysts take into account the price to earnings ratio to estimate the firm’s valuation. This ratio, which is also called as the P/E ratio evaluates the company on relative expense factor. The formula to calculate ratio is stock’s latest price/ per share earnings. The P/E ratio of Southwest Airlines Company (NYSE:LUV) stands at 9.69.
Analysts also work out Price/Earnings Growth ratio in an attempt to estimate the valuation of a firm. This ratio commonly known as the PEG ratio implies the stock’s valuation compared to earnings growth potential. Investors look to invest in the stocks with a lower PEG ratio. For Southwest Airlines Company Comm, the PEG ratio for coming 3-5 years is 0.68.
The technical analysis highlights that Southwest Airlines Company Comm current is trading $-2.35 points away or -6.06% from its 50-day moving average of $38.87. Further it is trading $-4.76 or -11.53% away its 200-day moving average of $41.28.
The 52-week high of Southwest Airlines Company (NYSE:LUV) was $51.34 while lowest point recorded in 52-week was $32.94. It implies if stock price makes a movement of over $-14.82, it will record a new 52-week high. In the case of +10.87% drop, it will touch a new 52-week low.
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