This week’s Long Ideas are HCA Healthcare Company (HCA), Southwest Airlines Company (LUV), and Verizon Communications (VZ). What’s Working: Southwest Airlines’ 2Q21 revenue of $4 billion is four times greater than 2Q20 and just 32% below pre-pandemic 2Q19 levels. As an airline primarily focused on servicing the U.S., Southwest Airlines’ business is prepared to rebound faster than other airlines that have more international exposure. In addition to a slow recovery in business travel, rising fuel costs could also slow Southwest Airlines’ recovery. In this scenario, Southwest Airlines’ NOPAT grows by 3% compounded annually from 2019-2030.

Source: Forbes August 09, 2021 13:07 UTC