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S1OU34 trade ideas

Southwest Airlines Co.Key arguments in support of the idea. • Changing the structure of the offer. • The shares are poised to align with their industry peers. Investment Thesis Southwest Airlines Co. (LUV) stands as a prominent leader among passenger airlines in the United States. LUV manages an extensive fleet, comprising 811 Boeing 737 aircraft. Changing the structure of the offer. Beginning in 2025, the company will start selling assigned seats priced at a minimum of 15% above the base fare. This strategic move is expected to be the primary catalyst for its share growth. By the end of 2025 or early 2026, at least 30% of cabins will be equipped with these new premium seats. Even with a marginal increase in the base fare, the airline's margin is projected to improve significantly. Despite these promising prospects, the market seems determined to overlook the future benefits that Southwest Airlines can achieve with relatively minimal effort. The shares are poised to align with their industry peers. In the past, following selloffs triggered by the carry trade effect, competitors' stocks experienced significant growth, whereas LUV demonstrated weaker performance due to ongoing proceedings with the activist fund. However, the current technical indicators appear quite favorable, and the sell-off that transpired on the day of the report release has already been recovered. We anticipate that the upward trend will persist through the end of the year. Furthermore, historical data suggests that November and December typically yield positive outcomes for this stock. For the next two months, the price target for LUV is set at $36.50, with a recommended stop-loss at $27.90.
NYSE:LUVLong
by FreedomHolding
The #1 Catalyst For South West Airlines Company StockAm dealing with the gap between the rich and poor its so painful because the moment your friend starts to make more money than you its like they make new friends who are more fun and exciting and if you are poor or just starting out the only friends you will have are those that follow your wisdom and want to better their lives. Trading is more than just making money for me its my occupation as most of my friends from my high school have no clue what I do for my occupation and if I try to explain there is a blank stare of doubt This stock NYSE:LUV has followed the rocket booster strategy to the full stop. What is the rocket booster strategy? the price has to be above the 50 EMA the price has to be above the 200 EMA the price has to gap up one more step is called the catalyst in this case, the catalyst is the earning report which will happen in the pre-market hours in the morning one of my mentor called tim sykes calls this a morning break out. this is what I predict tomorrow also, remember on the 2nd of November am giving you a price update of the Top13 Iron watchlist save that date. Remember to rocket boost this content to learn more. Disclaimer: Trading is risky please learn risk management and profit-taking strategies because you will lose money wether you like it or not.
NYSE:LUVLong
by lubosi
Southwest Airlines Welcomes Seat Change and a Massive BoardingAs Southwest Airlines ( NYSE:LUV ) charts a course through turbulent times in the aviation industry, the iconic carrier is contemplating a radical overhaul of its boarding and seating policies. In a bid to address operational challenges and enhance revenue streams, CEO Bob Jordan has hinted at sweeping changes that could revolutionize the passenger experience. Rethinking Tradition: Since its inception in the 1960s, Southwest Airlines ( NYSE:LUV ) has prided itself on its unique boarding process, eschewing assigned seats in favor of a free-for-all seating arrangement. However, amidst mounting frustrations and evolving consumer preferences, the airline is reevaluating this hallmark strategy, considering alternatives to streamline the boarding process and optimize cabin utilization. Navigating Turbulent Skies: The airline industry has been rocked by unprecedented challenges, with Southwest Airlines ( NYSE:LUV ) facing a particularly turbulent journey in recent times. A dismal earnings report, coupled with significant workforce reductions and route cancellations, has underscored the urgent need for strategic recalibration. Against this backdrop, the exploration of new boarding and seating initiatives emerges as a pivotal strategy for charting a path towards sustained profitability. Embracing Change: In a candid acknowledgment of the need for transformation, CEO Bob Jordan has signaled a departure from convention, asserting that Southwest Airlines ( NYSE:LUV ) is actively exploring innovative solutions to enhance the passenger experience and bolster financial performance. By reassessing seating configurations and cabin layouts, the airline aims to unlock new revenue streams while optimizing operational efficiency. Balancing Tradition with Innovation: While Southwest Airlines ( NYSE:LUV ) remains committed to its core principles of affordability and accessibility, the company recognizes the imperative of adapting to shifting market dynamics. The proposed changes in boarding and seating represent a delicate balance between preserving the airline's distinctive identity and embracing innovation to meet the evolving needs of modern travelers. A Vision for the Future: As Southwest Airlines ( NYSE:LUV ) embarks on this journey of reinvention, the airline industry watches with bated breath, anticipating the potential impact of these bold initiatives. Beyond mere logistical adjustments, the contemplated changes symbolize a broader commitment to reimagining the flying experience, reaffirming Southwest's position as a trailblazer in the skies. Technical Outlook Southwest Airlines ( NYSE:LUV ) stock closed Friday trading down 0.84% with a Relative Strength Index (RSI) of 36 trading below the 200-day Moving Average (MA).
NYSE:LUVShort
by DEXWireNews
Stocks pairs trading: UAL vs LUVWhen evaluating the investment potential between United Airlines Holdings Inc. (UAL) and Southwest Airlines Co. (LUV), several critical factors come into play, guiding a strategic approach to buying UAL shares while considering the sale of LUV. Reasons to Consider Buying UAL: Attractive Valuation with Growth Potential: UAL's forward P/E of 3.74 presents a significantly lower valuation compared to LUV's 12.42. This disparity in valuation becomes even more compelling when considering UAL's robust expected EPS growth over the next 5 years at 42.79%. This suggests that UAL is not only undervalued relative to its growth prospects but also stands as a promising investment for those looking at long-term growth. Market Recovery and Performance: UAL has shown a promising recovery trajectory, highlighted by a 5.85% increase year-to-date and a 4.59% increase over the past quarter. These metrics indicate a solid path to recovery, positioning UAL as an attractive option for investors betting on the airline industry's rebound. Strong Financial Health Indicators: With a market cap of $14.33B and income of $2.62B, alongside a notable EPS next 5Y growth rate of 42.79%, UAL showcases a sturdy financial foundation. This points to its ability to not just weather industry turbulence but to emerge stronger and more profitable in the coming years. Reasons to Consider Selling LUV: Concerns Over High Valuation and Sustainability: Despite LUV's impressive expected EPS growth next year of 48.61%, its high forward P/E of 12.42 raises questions about valuation and growth sustainability. Investors might view LUV as overvalued, especially when juxtaposed against its recent market performance, including a -17.50% drop over the past month. Short-Term vs. Long-Term Growth Perspectives: LUV's near-term growth prospects are undoubtedly strong. However, when considering long-term investment strategies, UAL's more attractive valuation and substantial five-year growth outlook offer a more compelling case. This suggests that while LUV may provide short-term gains, UAL presents a more favorable long-term growth trajectory at a better value. Market Performance and Recovery Concerns: LUV's recent performance, including significant monthly declines, contrasts with UAL's recovery momentum. This discrepancy may signal underlying challenges for LUV, potentially making it a less attractive hold for investors focused on stability and sustained growth. Decision: Buy 1 UAL: Given its lower valuation, significant long-term growth prospects, and evidence of a strong recovery path, UAL emerges as a strategic buy. Its current market position and financial metrics suggest it is undervalued, offering a favorable opportunity for investors aiming for long-term capital growth within the airline sector. Sell 2 LUV: Considering LUV's higher valuation and recent market challenges, coupled with sustainability concerns for its short-term growth, it may be prudent for investors to realize potential gains from LUV and reallocate investments towards more undervalued opportunities like UAL, which offers a better growth outlook and valuation proposition.
NYSE:LUV
by joyny
LUV and Attendants love the Settlement LONGLUV on a 120 minute chart fell heavily on news of a looming strike by flight attendants 18 % into a bear flag and support followed by a narrow range consolidation and a volatility squeeze which broke on news of the settlement. I LUV Sowthwest and its travel mileage perks and open seating. The NR7 indicator on watch was firing continuously. I am taking a long trade here and now with adds at any dips found moving foward. It is hard to pass by an 18% sale. This will be profitable and will subsidize travel on LUV.
NYSE:LUVLong
by AwesomeAvani
1
Southwest Airlines Faces Turbulence Shares Drops by 14.5%Southwest Airlines ( NYSE:LUV ) finds itself navigating through stormy skies as it grapples with the cascading effects of Boeing's ongoing challenges. The airline, renowned for its efficiency and customer-centric approach, has been forced to implement drastic measures, including a hiring freeze and capacity cuts, in response to disrupted aircraft deliveries from the troubled planemaker. As Southwest ( NYSE:LUV ) shares plummet and industry-wide repercussions unfold, the turbulence facing the aviation sector becomes increasingly evident. Boeing Woes Cast Shadow: Southwest's decision to slash capacity and halt hiring stems from the ripple effects of Boeing's turbulent saga. Regulatory scrutiny and criminal investigations following a near-catastrophic accident have compelled Boeing to cap output of its 737 Max model, leaving airlines like Southwest in a lurch. With diminished aircraft deliveries and heightened uncertainty, Southwest faces an uphill battle in maintaining operational stability amidst turbulent skies. Financial Fallout and Industry Impact: The repercussions of Boeing's woes extend far beyond Southwest, casting a shadow over the broader aviation industry. Alaska Airlines, another casualty of the January accident involving a Boeing 737 Max 9, grapples with capacity uncertainties and financial setbacks. As airlines recalibrate their forecasts and adjust to the evolving landscape, the challenges posed by Boeing's crisis underscore the interconnectedness of the aviation ecosystem. Navigating Uncertain Skies: Southwest's revised outlook for the year reflects the harsh realities of navigating uncertain skies. With reduced aircraft deliveries and lower-than-expected leisure passenger volumes, the airline braces for a challenging quarter ahead. However, early indications of strong second-quarter bookings offer a glimmer of hope amidst the turbulence, highlighting the resilience of Southwest's customer base in the face of adversity. Industry Insights and Outlook: As the aviation industry converges at a pivotal industry conference, airlines confront a landscape fraught with challenges and opportunities. While American Airlines anticipates a first-quarter loss at the low end of expectations, Delta Air Lines maintains optimism with robust revenue growth projections. JetBlue Airways, meanwhile, grapples with declining revenue but remains cautiously optimistic about cost management and capacity adjustments.
NYSE:LUVShort
by DEXWireNews
Highlighting $LUV's Key Pivot Level Fundamentals Analysis 1. NYSE:LUV announced a quarterly dividend of $0.18 per share, payable on January 6, 2024, to shareholders of record on December 20, 2023. 2. NYSE:LUV faced a regulatory action from the Federal Aviation Administration (FAA), which proposed requiring Boeing 737 operators to replace certain fan blades after a fatal incident involving a Southwest flight in 2018. Technical Analysis NYSE:LUV 50-day Moving Average is trading below the 200-day Moving Average of the stock indicating a Bearish Trend. Despite the current trend, NYSE:LUV 's showing signs of a Retest at the 2nd Pivot Level.
NYSE:LUVLong
by DEXWireNews
LUV Bounce of Covid LowsToday, we tagged the May 2020 COVID Lows for LUV. Back in May 2020, Buffet sold much of his airline stocks. This added the final capitulation for airlines, marking the low for 2020. Today, we got a nice hammer candle and a bounce from that exact pricepoint. Looking to get in with calls if we take out this hammer, with a stop below the COVID lows. RSI is extremely oversold. I understand this is a counter-trend trade but feels right for a bounce. I will update the trade with exact option details if the trade triggers.
NYSE:LUVLong
by jl360
3
LUV : Going longFundamental Analysis According to data released by Statista on August 29, 2023, LUV holds approximately 16.9% of the domestic market share among leading US airlines from February 2022 to January 2023. This marks the third highest percentage of market share held by a single airline in the US, indicating a significant competitive advantage. Furthermore, the airline industry is a crucial sector for economic growth, and governments typically strive to support major players within it to prevent failures. My game plan is to invest in the top four airline companies in the US, based on their market share, at favorable values determined by price action. I already hold a position in UAL and AAL. The remaining airlines on my list are LUV and DAL. Technical Analysis The current price is at a key levels close to the low of the higher time frame descending channel, prompting me to initiate a position, representing approximately 2.5% of my capital as a single entry. I do not intend to increase this position further, even if the price experiences a significant decline. However, I will consider purchasing other airline stocks from my watchlist if they reach my desired entry levels. Conclusion If I decide to make any changes to my position in the future, I will provide updates to this post. Check out the posts, regarding my other Airline stock entries, which is attached underneath.
NYSE:LUVLong
by Sniper-Traders
LUV Weekly Chart Showing Heavy DemandSouthwest Airlines has been going through some turbulence with recent flight rearrangement issues, but for the most part has smoothened out all issues regarding flights. Air Travel Demand is still thriving and growing exponentially, respectively. Southwest is a leader among a few others in Airline Stocks as they have High-Quality Management & Great Financial Strategy (e.g. Fuel hedging) The stock has performed quite poorly since its post-COVID peak of $65 and has retreated nearly 50% while remaining a sound financial base. Southwest has been hovering around this major demand zone at the $30 area. As highlighted in green, this demand zone has repeatedly pushed LUV back up higher, and on this weekly chart, we can see a triple bottom starting to push back higher from this $31 level. This weekly chart prevails a strong Risk/Reward towards Southwest as a swing-trade or LT investment. Southwest has remained a fundamentally strong & sound company as they are the first American Airline Co. to reinstate their dividend. EPS projections are very optimistic for the next several years as demand increases & costs decrease. It would also be likely to see a rotation into the travel / Airlines sector as it has been quite low and non-volatile thru the past half year. Recent PT cuts lead me to believe Funds could be loading up Conclusion: LONG NYSE:LUV through commons Option Play: Credit-Spread : Jan 19, '24 Puts $30-$27.5p
NYSE:LUVLong
by ZachSap
LUV to 47Breakout and Retest: LUV has broken out of a channel and subsequently retested near the 32.53 gap fill. This retest indicates a possible support level, suggesting that the stock might be gearing up for a rebound. Profit Targets: Based on my analysis, I’ve identified two profit targets. The first one lies at 34.82, and the second at 36.90. Notably, these levels align with gap fills, which often act as significant price levels. Larger Breakout Potential: A breakout above the 40 mark could be a crucial turning point. If this breakout occurs, it could signal the possibility of a more substantial upward move, with a larger profit target set at 47.16. Support Levels: In addition to the gap fill support at 32.53, there are other potential support levels to consider. The upward sloping trendline originating from this year’s low offers a supportive context. Furthermore, the 30.93 gap fill provides an additional layer of potential support.
NYSE:LUVLong
by TriumphOne