Southwest Airlines Stock Probability of Future Stock Price Finishing Over 59.83
| LUV Stock | USD 27.84 0.30 1.09% |
Closest to current price Southwest long CALL Option Payoff at Expiration
Southwest |
Southwest Airlines Target Price Odds to finish over 59.83
The tendency of Southwest Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to move over $ 59.83 or more in 90 days |
| 27.84 | 90 days | 59.83 | close to zero percent |
Based on a normal probability distribution, the odds of Southwest Airlines to move over $ 59.83 or more in 90 days from now is close to zero percent (This Southwest Airlines probability density function shows the probability of Southwest Stock to fall within a particular range of prices over 90 days) . Probability of Southwest Airlines price to stay between its current price of $ 27.84 and $ 59.83 at the end of the 90-day period is about 87.93 .
Considering the 90-day investment horizon Southwest Airlines has a beta of 0.97. This indicates Southwest Airlines market returns are correlated to returns on the market. As the market goes up or down, Southwest Airlines is expected to follow. Additionally Southwest Airlines has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Southwest Airlines Price Density |
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Predictive Modules for Southwest Airlines
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Southwest Airlines. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Southwest Airlines' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Southwest Airlines Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. Southwest Airlines is not an exception. The market had few large corrections towards the Southwest Airlines' value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold Southwest Airlines, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Southwest Airlines within the framework of very fundamental risk indicators.α | Alpha over NYSE Composite | -0.11 | |
β | Beta against NYSE Composite | 0.97 | |
σ | Overall volatility | 2.39 | |
Ir | Information ratio | -0.04 |
Southwest Airlines Alerts and Suggestions
In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of Southwest Airlines for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Southwest Airlines can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| Over 82.0% of the company shares are owned by institutional investors | |
| On 27th of March 2024 Southwest Airlines paid $ 0.18 per share dividend to its current shareholders | |
| Latest headline from bizjournals.com: Southwest Airlines announces CVG service expansion, new Nashville flight |
Southwest Airlines Price Density Drivers
Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of Southwest Stock often depends not only on the future outlook of the current and potential Southwest Airlines' investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Southwest Airlines' indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 640 M | |
| Cash And Short Term Investments | 11.5 B |
Southwest Airlines Technical Analysis
Southwest Airlines' future price can be derived by breaking down and analyzing its technical indicators over time. Southwest Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Southwest Airlines. In general, you should focus on analyzing Southwest Stock price patterns and their correlations with different microeconomic environments and drivers.
Southwest Airlines Predictive Forecast Models
Southwest Airlines' time-series forecasting models is one of many Southwest Airlines' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary Southwest Airlines' historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.
Things to note about Southwest Airlines
Checking the ongoing alerts about Southwest Airlines for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Southwest Airlines help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
| Over 82.0% of the company shares are owned by institutional investors | |
| On 27th of March 2024 Southwest Airlines paid $ 0.18 per share dividend to its current shareholders | |
| Latest headline from bizjournals.com: Southwest Airlines announces CVG service expansion, new Nashville flight |
Check out Southwest Airlines Backtesting, Southwest Airlines Valuation, Southwest Airlines Correlation, Southwest Airlines Hype Analysis, Southwest Airlines Volatility, Southwest Airlines History as well as Southwest Airlines Performance. For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide.You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
Complementary 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.
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Is Southwest Airlines' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Southwest Airlines. If investors know Southwest will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Southwest Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.30) | Dividend Share 0.72 | Earnings Share 0.76 | Revenue Per Share 43.85 | Quarterly Revenue Growth 0.105 |
The market value of Southwest Airlines is measured differently than its book value, which is the value of Southwest that is recorded on the company's balance sheet. Investors also form their own opinion of Southwest Airlines' value that differs from its market value or its book value, called intrinsic value, which is Southwest Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Southwest Airlines' market value can be influenced by many factors that don't directly affect Southwest Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Southwest Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if Southwest Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Southwest Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.