CrowdThnk Blog


Southwest Airlines Flies Higher on Brighter Prospects

Southwest (LUV, CrowdThnk Score 9.29) led the way amongst CrowdThnk Top Conviction Forecasts for the week starting December 4th, posting a healthy +5.47% gain, as airlines will be among the biggest winners if Republican Tax Cuts pending in Congress become law.  This will position carriers to add jobs and invest more into their companies as many airline executives have mentioned a willingness to invest in more equipment and pay back debt with their tax savings.  While higher costs led to a decline in quarterly earnings on a year-over-year basis for most airlines, including a -5.4% drop for Southwest, prospects are looking up for airline stocks post the difficult hurricane period.  Southwest announced an improved unit revenue forecast for the fourth quarter, citing buoyant demand for air travel along with improving yields.  In particular, Southwest Airlines expects operating revenue per available seat miles to increase between 1-2% in the final quarter of 2017.

Other CrowdThnk Top Forecasts that recorded positive gains included HCA Healthcare (HCA, CrowdThnk Score 6.79) and Texas Instruments (TXN, CrowdThnk Score 8.57) while McKeeson (MCK, CrowdThnk Score 3.57) and NVIDIA (NVDA, CrowdThnk Score 7.14) both posted losses following CrowdThnk predictions.  Finally, Hewlett Packard (HPE, CrowdThnk Score 7.14) finished flat on the week.