(LUV) Southwest Airlines - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US8447411088

LUV: Passenger, Flights, Rewards, Entertainment, Services

Southwest Airlines Co. is a leading passenger airline operating scheduled air transportation services across the United States and near-international markets. As of December 31, 2024, the company maintained a fleet of 803 Boeing 737 aircraft, serving 117 destinations in 42 states, the District of Columbia, Puerto Rico, and ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. The airline is known for its point-to-point route structure, no-frills service model, and customer-centric approach, which includes free checked bags and no change fees. Southwest also offers inflight entertainment, Wi-Fi connectivity, and the Rapid Rewards loyalty program, allowing members to earn points on base fares. Additional services include Southwests EarlyBird Check-In, upgraded boarding options, and specialized handling for pets and unaccompanied minors. The company provides digital platforms such as its website, mobile app, and SWABIZ, an online booking tool for business travelers. Incorporated in 1967, Southwest Airlines is headquartered in Dallas, Texas, and operates with a focus on operational efficiency and customer satisfaction.

Southwest Airlines Co. (NYSE:LUV) operates as a major player in the U.S. passenger airline industry, with a fleet optimized for short- and medium-haul flights. The airlines business model emphasizes low fares, high fleet utilization, and a single aircraft type (Boeing 737), which reduces maintenance and training costs. As of the latest data, the company serves a broad network of domestic and near-international destinations, catering to both leisure and business travelers. Its ancillary revenue streams include fees for priority boarding, extra legroom seating, and pet transportation. The airlines digital platforms, including its website and app, are designed to streamline the booking and travel experience, while SWABIZ targets corporate clients with tailored booking solutions. Southwests commitment to operational simplicity and customer-focused services has positioned it as a competitive force in the U.S. airline market.

Ticker Symbol: LUV Exchange: NYSE Type: common stock Country Origin: United States GICS Sub Industry: Passenger Airlines Based on and , Southwest Airlines Co. (LUV) is expected to face headwinds in the near term. The stock is trading below its SMA 20, SMA 50, and SMA 200, indicating bearish momentum. The ATR of 1.64 suggests moderate volatility. However, the forward P/E of 14.95 signals potential upside as market expectations align with earnings growth. Over the next three months, LUV may experience sideways trading with potential resistance at the SMA 50 level of 29.83. Support is likely near the SMA 200 at 29.86. The P/S ratio of 0.54 reflects undervaluation relative to its peers, while the RoE of 4.48 indicates modest profitability. Overall, the stock is likely to remain range-bound with limited upside unless broader market sentiment improves.

Additional Sources for LUV Stock

LUV Stock Overview

Market Cap in USD 14,646m
Sector Industrials
Industry Airlines
GiC Sub-Industry Passenger Airlines
IPO / Inception 1980-01-02

LUV Stock Ratings

Growth Rating -10.3
Fundamental -0.20
Dividend Rating 50.6
Rel. Strength 4.44
Analysts 2.91/5
Fair Price Momentum 25.00 USD
Fair Price DCF -

LUV Dividends

Dividend Yield 12m 2.58%
Yield on Cost 5y 2.62%
Annual Growth 5y 31.95%
Payout Consistency 87.7%

LUV Growth Ratios

Growth Correlation 3m -39.3%
Growth Correlation 12m 54.3%
Growth Correlation 5y -64.9%
CAGR 5y -0.75%
CAGR/Max DD 5y -0.01
Sharpe Ratio 12m 0.63
Alpha -10.46
Beta 0.877
Volatility 40.82%
Current Volume 8780.6k
Average Volume 20d 12805.2k
What is the price of LUV stocks?
As of April 26, 2025, the stock is trading at USD 26.49 with a total of 8,780,596 shares traded.
Over the past week, the price has changed by +10.19%, over one month by -23.59%, over three months by -18.21% and over the past year by -0.51%.
Is Southwest Airlines a good stock to buy?
Neither. Based on ValueRay Fundamental Analyses, Southwest Airlines is currently (April 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of -0.20 and therefor a neutral outlook according to the companies health.
Based on ValueRays Analyses, Dividends and Discounted-Cash-Flow, the Fair Value of LUV as of April 2025 is 25.00. This means that LUV is currently overvalued and has a potential downside of -5.62%.
Is LUV a buy, sell or hold?
Southwest Airlines has received a consensus analysts rating of 2.91. Therefor, it is recommend to hold LUV.
  • Strong Buy: 2
  • Buy: 2
  • Hold: 14
  • Sell: 2
  • Strong Sell: 3
What are the forecast for LUV stock price target?
According to ValueRays Forecast Model, LUV Southwest Airlines will be worth about 27.3 in April 2026. The stock is currently trading at 26.49. This means that the stock has a potential upside of +3.13%.
Issuer Forecast Upside
Wallstreet Target Price 29.7 11.9%
Analysts Target Price 32.3 21.8%
ValueRay Target Price 27.3 3.1%