Southwest (LUV) Surges 8.1%: Is This an Indication of Further Gains?

Group 1: Southwest Airlines Performance - Southwest Airlines (LUV) shares increased by 8.1% to close at $37.35, with trading volume significantly higher than usual [1] - The stock's performance is in contrast to a 3.1% gain over the past four weeks [1] Group 2: Industry Context - The positive movement in Southwest's stock is attributed to optimism in the airline industry following Delta Air Lines' better-than-expected second-quarter 2025 earnings results [2] - Delta's earnings and revenue exceeded expectations, and the restoration of full-year guidance has pleased investors [2] Group 3: Earnings Estimates and Trends - Southwest's consensus EPS estimate for the upcoming quarter has been revised down by 20.3% over the last 30 days [4] - A negative trend in earnings estimate revisions typically does not lead to price appreciation, indicating potential caution for future stock performance [4] Group 4: Comparison with JetBlue Airways - JetBlue Airways (JBLU) also saw a stock increase of 7.8% to close at $4.56, but has returned -13% over the past month [5] - JetBlue's consensus EPS estimate has changed by -85% over the past month to -$0.31, reflecting a significant decline from the previous year [6]