Analyzing Southwest Airlines Co (LUV)’s Gross, Operating, Pretax, and Net Margins

Kevin Freeman

Southwest Airlines Co [LUV] stock is trading at $31.62, up 6.57%. Until recently, the best way to gauge how the stock has performed was to look at its short-term value. The LUV shares have gain 3.13% over the last week, with a monthly amount drifted -2.38%, 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 July 24, 2025, when HSBC Securities downgraded its rating to a Reduce. Previously, Evercore ISI downgraded its rating to In-line on July 15, 2025, and kept the price target unchanged to $40. On May 29, 2025, upgrade upgraded it’s rating to Buy but maintained its price target of $40 on the stock. Jefferies upgraded its rating to a Hold but stick to its price target of $33 on May 27, 2025. Jefferies downgraded its rating to a Underperform but $28 remained the price target by the analyst firm on April 01, 2025. UBS upgraded its rating to Neutral for this stock on March 20, 2025, and upped its price target to $36. In a note dated March 20, 2025, Melius upgraded a Hold rating on this stock.

Southwest Airlines Co [LUV] stock has fluctuated between $23.82 and $37.96 over the past year. Currently, Wall Street analysts expect the stock to reach $35.25 within the next 12 months. Southwest Airlines Co [NYSE: LUV] shares were valued at $31.62 at the most recent close of the market. An investor can expect a potential return of 11.48% based on the average LUV price forecast.

Analyzing the LUV fundamentals

Southwest Airlines Co [NYSE:LUV] reported sales of 27.55B for the trailing twelve months, which represents a growth of 1.15%. Gross Profit Margin for this corporation currently stands at 0.25% with Operating Profit Margin at 0.01%, Pretax Profit Margin comes in at 0.02%, and Net Profit Margin reading is 0.01%. To continue investigating profitability, this company’s Return on Assets is posted at 0.02, Equity is 0.04 and Total Capital is 0.06. An extended analysis of the company’s primary financial structure reveals a debt-to-equity ratio of0.68.

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 30.40 points at the first support level, and at 29.17 for the second support level. However, for the 1st resistance point, the stock is sitting at 32.25, and for the 2nd resistance point, it is at 32.87.

Ratios To Look Out For

For context, Southwest Airlines Co’s Current Ratio is 0.49. As well, the Quick Ratio is 0.42, while the Cash Ratio is 0.26. Considering the valuation of this stock, the price to sales ratio is 0.59, the price to book ratio is 2.10 and price to earnings (TTM) ratio is 48.19.

Transactions by insiders

Recent insider trading involved Feinberg Sarah, Director, that happened on Aug 05 ’25 when 1500.0 shares were purchased. Director, SARETSKY GREGG A completed a deal on Aug 06 ’25 to buy 3345.0 shares. Meanwhile, Officer Green Ryan C. bought 20910.0 shares on Jun 06 ’25.

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