LUV

Southwest Airlines Co

Industrial/Transportation


Presented:02/13/2023
Price:$35.07
Cap:$20.84B
Current Price:$30.49
Cap:$18.27B

Presented

Date02/13/2023
Price$35.07
Market Cap$20.84B
Ent Value$17.14B
P/E Ratio44.37x
Book Value$17.99
Div Yield0.51%
Shares O/S594.29M
Ave Daily Vol6,544,708
Short Int1.93%

Current

Price$30.49
Market Cap$18.27B
Southwest Airlines Co. engages in the operation and management of a passenger airline. It offers ancillary services such as early bird check-in, upgraded boarding, and transportation of pets and unaccompanied minors. The firm operates in U.S. states, District of Columbia, the Commonwealth of Puerto Rico, Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. The company was founded by Rollin W. King and Herbert D. Kelleher on March 9, 1967, and is headquartered in Dallas, TX.

Publicly traded companies mentioned herein: American Airlines Group Inc (AAL), Southwest Airlines Co (LUV)

Highlights

The presenter is long shares of Southwest Airlines Co (LUV), which he considers the highest quality US airline. Its share price imploded in December 2022 (-20%), coinciding with the massive issues around cancellations. This operational meltdown has created a noisy setup for early 2023, and he views this as a structural hangover in Q1 but expects improved execution overall. At 9x consensus 2024 EPS, LUV is trading below its historical 10x – 14x multiple, and he sees 70% upside to the Street’s earnings. He is taking a contrarian stance to the market which is pricing LUV stock as if something is catastrophically wrong with the company.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.