DailyIQ
|
Sector:IndustrialsAll sectors
Last updated 2 minutes ago

LUV·Southwest Airlines Co.

$.
+. (+.%)
After Hours
High
$44.44
Open
$43.46
Market Cap
20.72B
52W High
$55.11
Low
$41.86
P. Close
$43.67
P/E
25.36
52W Low
$28.98
Fwd P/E
9.37
Mean Target
$45.43
Technical Score (1D)
82
BUY
News Sentiment
61
BULLISH
Southwest Airlines is rolling out significant cabin and ticketing changes, including extra legroom seating and assigned seating, alongside a new basic economy fare. These adjustments are intended to sharpen Southwest's competitive edge by providing a wider array of fare choices and a more streamlined customer journey. This strategic shift is designed to better appeal to leisure travelers and intensify competition within the domestic market. Meanwhile, American Airlines has selected SpaceX's Starlink for inflight Wi-Fi on over 500 Airbus aircraft, set to begin early next year. This contract marks a notable victory for Starlink in the inflight connectivity sector, underscoring the increasing demand for low Earth orbit satellite internet solutions. The move intensifies competition among satellite internet providers vying for airline partnerships.
Earnings Summary
Southwest Airlines is a prominent domestic air carrier operating within the United States and select near-international markets, focusing on providing accessible air travel. The company utilizes a fleet of Boeing 737 aircraft and serves a network of 117 destinations, enhancing customer experience through in-flight services and its Rapid Rewards loyalty program. Operating within the Industrials sector, specifically the Airlines industry, Southwest competes in a dynamic and often volatile market. Analyzing Southwest's recent earnings, the company demonstrated an EPS beat in Q4 2024 with actual earnings of $0.56 against an estimate of $0.46, alongside revenue of $6.93 billion. The subsequent quarter, Q1 2025, saw an EPS miss, reporting -$0.13 versus an estimate of -$0.19, with revenue at $6.43 billion. Q2 2025 also presented an EPS miss, with actual earnings of $0.43 compared to an estimate of $0.51, though revenue reached $7.24 billion. The most recent reported quarter, Q3 2025, showed an EPS beat of $0.11 against an estimate of -$0.04, with revenue at $6.95 billion. The latest reported quarter, Q1 2026, showed an EPS miss of $0.45 against an estimate of $0.47, with revenue at $7.25 billion against an estimate of $7.28 billion. Historically, Southwest Airlines has shown a mixed pattern of performance against analyst estimates. While Q4 2024 and Q3 2025 saw positive EPS surprises, Q1 2025, Q2 2025, and Q1 2026 reported earnings below expectations. Revenue figures, where available, have generally trended upwards year-over-year, though specific growth rates are not provided for direct comparison across all periods. The company has experienced both beats and misses in its earnings per share over the last several quarters, indicating variability in its profitability relative to analyst projections. Recent news indicates a positive analyst outlook, with UBS raising its price target for Southwest Airlines to $53, suggesting continued conviction in the company's performance. CEO Bob Jordan is scheduled to participate in a fireside chat at the Bernstein Strategic Decisions Conference, offering investors a direct channel to hear about strategic matters and potentially influencing the valuation narrative. Despite recent short-term stock gains, the company has experienced a more significant decline over the past three months, though its one-year total return remains strong. Looking ahead, investors will be watching for the impact of positive analyst sentiment and any strategic insights shared by leadership. Key will be observing whether Southwest can consistently meet or exceed EPS estimates in upcoming quarters and how its revenue growth trajectory evolves. The company's ability to navigate market dynamics and translate strategic initiatives into sustained financial performance will be crucial for future investor confidence.

EPS

EstBeatMiss
$-0.30$-0.06$0.18$0.43$0.67Q4'24Q1'25Q2'25Q3'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$0.46 - -
Q1'26$0.47$0.45-5.0%
Q3'25$-0.04$0.11+401.0%
Q2'25$0.51$0.43-16.2%
Q1'25$-0.19$-0.13+32.2%
Q4'24$0.46$0.56+21.5%

Revenue

EstBeatMiss
$6.1B$6.8B$7.5B$8.3B$9.0BQ4'24Q1'25Q2'25Q3'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$8.7B - -
Q1'26$7.3B$7.2B-0.4%
Q3'25 - $6.9B -
Q2'25 - $7.2B -
Q1'25 - $6.4B -
Q4'24 - $6.9B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
→

Market Data

LUV Stock Snapshot

LUV is currently trading at $43.57, giving Southwest Airlines Co. a market cap of 20.72B and a P/E ratio of 25.4. Today's range spans $41.86–$44.44, with shares opening at $43.46 and moving down $0.10 (0.2%) from the prior close. DailyIQ's technical score sits at 82/100 (BUY) with a news sentiment reading of 61/100.

Over the past year LUV has traded between $28.98 and $55.11 - the current price is +50.3% off the 52-week low and -20.9% from the high. 31 analysts cover the stock with a Buy consensus and a mean 12-month target of $45.43 (range $30.00–$60.00), implying upside of +4.3%.

What LUV has right now - BUY signal, 82/100 technical score, bullish sentiment at 61/100, price $43.57 (in the middle of its 52-week range) - is the profile that shows up in screens looking for Industrials growth stories with technical confirmation. (P/E: 25.4) At 20.72B in capitalization, the risk/reward of a setup like this is often better than in mega-cap peers where the same signal translates to a smaller percentage move. Range: $28.98–$55.11.

What makes LUV's BUY setup (82/100) particularly actionable at 20.72B in Industrials capitalization is the scale-to-move ratio: large enough to feature on institutional mandates but not so large that the percentage upside is already compressed by index inertia. At $43.57 (in the middle of its 52-week range in $28.98–$55.11), with sentiment running bullish at 61/100, the setup rewards conviction-sized positioning more than it does speculative small bets.