The outlook and analysis of Southwest Airlines Co (LUV)’s stock

At the time of writing, Southwest Airlines Co [LUV] stock is trading at $27.26, up 2.29%. It is a good measure of the stock’s recent performance to check whether the stock’s short-term value is rising or falling. The LUV shares have gain 10.14% over the last week, with a monthly amount drifted -18.84%, and not seem to be holding up well over a long-time horizon.

From an analyst’s perspective:

Southwest Airlines Co [NYSE: LUV] stock has seen the most recent analyst activity on April 01, 2025, when Jefferies downgraded its rating to a Underperform but kept the price target unchanged to $28 for it. Previously, UBS upgraded its rating to Neutral on March 20, 2025, and elevated its price target to $36. On March 20, 2025, upgrade upgraded it’s rating to Hold. JP Morgan downgraded its rating to a Underweight but stick to its price target of $25 on March 03, 2025. Argus upgraded its rating to a Buy but $35 remained the price target by the analyst firm on February 11, 2025. BofA Securities downgraded its rating to Underperform for this stock on January 17, 2025, but kept the price target unchanged to $31. In a note dated January 16, 2025, Citigroup downgraded an Sell rating on this stock and revised its target price from $31.50 to $29.50.

For the past year, the stock price of Southwest Airlines Co fluctuated between $23.58 and $36.12. Currently, Wall Street analysts expect the stock to reach $32.33 within the next 12 months. Southwest Airlines Co [NYSE: LUV] shares were valued at $27.26 at the most recent close of the market. An investor can expect a potential return of 18.6% based on the average LUV price forecast.

Analyzing the LUV fundamentals

According to Southwest Airlines Co [NYSE:LUV], the company’s sales were 27.58B for trailing twelve months, which represents an 1.56% jump. Gross Profit Margin for this corporation currently stands at 0.26% with Operating Profit Margin at 0.03%, Pretax Profit Margin comes in at 0.03%, and Net Profit Margin reading is 0.02%. To continue investigating profitability, this company’s Return on Assets is posted at 0.03, Equity is 0.05 and Total Capital is 0.1. An extended analysis of the company’s primary financial structure reveals a debt-to-equity ratio of0.42.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 26.70 points at the first support level, and at 26.15 for the second support level. However, for the 1st resistance point, the stock is sitting at 27.60, and for the 2nd resistance point, it is at 27.95.

Ratios To Look Out For

It is important to note that Southwest Airlines Co [NYSE:LUV] has a current ratio of 0.77. Further, the Quick Ratio stands at 0.72, while the Cash Ratio is 0.59. Considering the valuation of this stock, the price to sales ratio is 0.56, the price to book ratio is 1.66 and price to earnings (TTM) ratio is 32.37.

Transactions by insiders

Recent insider trading involved Hess David P, Director, that happened on Apr 28 ’25 when 7500.0 shares were purchased. Director, Cush C. David completed a deal on Mar 12 ’25 to buy 5000.0 shares. Meanwhile, Director Watson Patricia A bought 3268.0 shares on Mar 13 ’25.

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