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Wednesday, April 4, 2012

Undervalued Stock Detected (NYSE: LUV)

Shares of LUV traded higher by 3.35% or $0.275/share to $8.48. Southwest Airlines Co. is trading at a price to book ratio of 0.92. This indicates that the value of the company's underlying assets exceeds today's market price. The PEG is 1.05 suggesting that the shares are attractively priced relative to the firm's growth rate. The price to sales ratio came in at 0.4. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 6545360 shares of LUV exchange hands on a given day and today's volume is recorded at 1656366. These financial metrics combined make this company seem undervalued. Value investors may have an eye on this one, especially if the stock gets cheaper.

Southwest Airlines Co. operates Southwest Airlines, a passenger airline, which provides scheduled air transportation in the United States.