Southwest Airlines Stock Plunges 16% in 16 Days
Earlier this month, shares of Southwest Airlines (NYSE: LUV) were nearing a 52-week high, as investors grew more confident about the airline industry's post-pandemic recovery.
That optimism has disappeared almost overnight. Southwest Airlines stock has fallen 16% since topping out on July 11, punctuated by a 9% drop after its earnings report on Thursday. While the airline giant continues to have a strong balance sheet, its once-vaunted business model is in shambles. That makes Southwest Airlines stock a bad bet compared to better-managed and more profitable peers.
Southwest Airlines reported subpar second-quarter results this week (though they met Wall Street's low expectations). Unit revenue fell 8.3% from last year's elevated level, more than offsetting the tailwind from lower fuel prices.
Source Fool.com
Southwest Airlines Co. Stock
Currently there is a rather positive sentiment for Southwest Airlines Co. with 13 Buy predictions and 7 Sell predictions.
With a target price of 33 € there is a positive potential of 38.45% for Southwest Airlines Co. compared to the current price of 23.84 €.
