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Steve Hach is the Senior Editor at ValuEngine.com, a Newtown, Pennsylvania-based stock valuation and forecast service. ValuEngine utilizes Ivy League financial research as the basis for its coverage of more than 7000 US, Japanese, and Canadian, and other foreign stocks. Hach utilizes... More
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  • A Bigger LUV 0 comments
    Sep 27, 2010 12:28 PM | about stocks: LUV, LUV
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    September 27, 2010
    ATTENTION Advanced Investors and Finance Professionals:
    If you are reading this you should download ValuEngine Institutional Software to see how VE’s powerful quantitative tools can increase your productivity and effectiveness.
    A Bigger LUV

    Southwest Buys AirTran

      Today, SOUTHWEST AIRLINES (NYSE:LUV) announced a major expansion via the purchase of low-cost competitor AirTran (AAI).  The $1.4 billion deal will allow SOUTHWEST better market penetration in the Northeast and move the company into Atlanta for the first time.  Analysts say the deal should increase SOUTHWEST's revenues by about 20% while increasing their network by @25%.  SOUTHWEST notes that it has no plans to change various aspects of its business that distinguish it from rivals--no checked bag fees, no participation in internet website travel sites, open seating, etc.

      ValuEngine has issued a BUY recommendation for SOUTHWEST AIRLINES. Based on the information we have gathered and our resulting research, we feel that SOUTHWEST AIRLINES has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE company size, volatility and momentum.

      SOUTHWEST AIRLINES is a major domestic airline that provides primarily short haul, high-frequency, point-to-point, low-fare service. SOUTHWEST AIRLINES operates over Boeing 737 aircraft in numerous cities. SOUTHWEST AIRLINES has one of the lowest operating cost structures in the domestic airline industry.

      Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE

      Subscribers can check out the latest figures on SOUTHWEST AIRLINES from our models HERE

    Market Indices Data
      Latest Change YTD
    Dow Jones
    10,837.10 -23.20 3.92%
    NASDAQ Composite
    2,374.43 -6.79 4.64%
    Russell 2000
    667.13 -3.88 5.21%
    S&P 500
    1,145.13 -3.54 2.69%

     

    ValuEngine Market Overview
    Summary of VE Stock Universe
    Stocks Undervalued
    63.4%
    Stocks Overvalued
    36.6%
    Stocks Undervalued by 20%
    31.63%
    Stocks Overvalued by 20%
    13.32%

     

    ValuEngine Sector Overview
    Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
    Energy 1.79% 7.10% 1.45% 0.59% undervalued 21.95% 24.65
    Basic Industries 2.98% 7.07% 21.35% 1.20% undervalued 31.07% 22.95
    Public Utilities 1.80% 2.69% -1.81% 3.68% undervalued 10.11% 18.69
    Transportation 2.43% 6.05% 9.65% 4.75% undervalued 10.87% 18.52
    Consumer Non-Durables 1.97% 5.01% 6.04% 9.10% undervalued 15.88% 16.60
    Finance 1.71% 4.30% 10.14% 9.21% undervalued 0.35% 17.61
    Consumer Services 2.14% 7.09% 8.73% 10.22% undervalued 9.42% 20.55
    Capital Goods 2.63% 5.68% 14.45% 10.79% undervalued 6.85% 20.11
    Technology 2.31% 9.03% 13.88% 12.60% undervalued 15.88% 23.87
    Consumer Durables 2.46% 6.34% 10.62% 14.53% undervalued 17.07% 17.13
    Health Care 1.75% 6.58% 18.24% 14.86% undervalued -0.99% 21.19

     

     
     
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    Disclosure: no positions
    Themes: Airlines Stocks: LUV, LUV
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