Southwest Airlines Rated 50% by Multi-Factor Investor Model

Southwest Airlines Co. has received a 50% rating from the Multi-Factor Investor model, raising concerns over its fundamental performance and stock valuation. The rating reflects a mix of strong and weak aspects of the airline's financials.

Date: 28-09-2024

AI Rating: 5

The report provides a detailed analysis of SOUTHWEST AIRLINES CO (LUV), categorizing it as a large-cap growth stock in the airline industry. The Multi-Factor Investor model evaluates stocks based on their fundamentals and valuation, rating this stock at 50%. A score below 80% indicates limited interest according to the model.

Within the strategy, the analysis indicates that:

Market Cap: The stock passes this criterion, demonstrating stability and size in the market.
Standard Deviation: Performance in this area is also viewed positively, suggesting lower volatility relative to peers.
Twelve Minus One Momentum: The stock receives a neutral rating, indicating it neither stands out positively nor negatively.
Net Payout Yield: Similar to the momentum measure, this aspect is marked as neutral, implying average performance in returning cash to shareholders.
Final Rank: The report concludes with a fail on the final rank, further emphasizing concerns about the stock's overall valuation and fundamental health.

Despite passing certain criteria, the mixed ratings suggest investors should exercise caution. With a final score below 60%, it may dissuade potential buyers looking for stronger performance and returns.

Stocks: LUV