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LUV Stock Forecast: Southwest Airlines Co. Price Predictions for 2025

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$31.21

-0.55 (-1.73%)

LUV Stock Forecast 2025-2026

$31.21
Current Price
$18.03B
Market Cap
24 Ratings
Buy 6
Hold 11
Sell 7
Wall St Analyst Ratings

Distance to LUV Price Targets

+28.2%
To High Target of $40.00
-13.6%
To Median Target of $26.95
-39.1%
To Low Target of $19.00

LUV Price Momentum

-4.5%
1 Week Change
+22.3%
1 Month Change
+17.1%
1 Year Change
-7.2%
Year-to-Date Change
-13.6%
From 52W High of $36.12
+32.4%
From 52W Low of $23.58
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Latest LUV Stock Price Targets & Analyst Predictions

Based on our analysis of 30 Wall Street analysts, LUV has a neutral consensus with a median price target of $26.95 (ranging from $19.00 to $40.00). The overall analyst rating is Buy (6.0/10). Currently trading at $31.21, the median forecast implies a -13.6% downside. This outlook is supported by 6 Buy, 11 Hold, and 7 Sell ratings.

The most optimistic forecast comes from Savanthi Syth at Raymond James, projecting a 28.2% upside. Conversely, the most conservative target is provided by Helane Becker at TD Cowen, suggesting a 39.1% downside.

Please note that analyst price targets are forward-looking estimates subject to substantial market, economic, and company-specific risks. Past performance does not guarantee future results, and actual stock performance may materially differ from these projections. Investors should conduct their own due diligence and consider their investment objectives and risk tolerance before making investment decisions.

LUV Analyst Ratings

6
Buy
11
Hold
7
Sell

LUV Price Target Range

Low
$19.00
Average
$26.95
High
$40.00
Current: $31.21

Latest LUV Stock Forecasts by Analyst

These are the latest 20 analyst ratings and price targets for LUV.

Date Firm Analyst Rating Change Price Target
Apr 29, 2025 Raymond James Savanthi Syth Outperform Reiterates $40.00
Apr 24, 2025 Barclays Brandon Oglenski Equal-Weight Maintains $26.00
Apr 14, 2025 Citigroup Stephen Trent Sell Maintains $23.00
Apr 8, 2025 Barclays Brandon Oglenski Equal-Weight Maintains $32.00
Apr 7, 2025 UBS Thomas Wadewitz Neutral Maintains $27.00
Apr 7, 2025 Susquehanna Christopher Stathoulopoulos Neutral Maintains $25.00
Apr 2, 2025 Raymond James Savanthi Syth Outperform Maintains $42.00
Mar 28, 2025 Citigroup Stephen Trent Sell Maintains $30.00
Mar 20, 2025 UBS Thomas Wadewitz Neutral Upgrade $36.00
Mar 20, 2025 Melius Research Conor Cunningham Hold Upgrade $34.00
Mar 18, 2025 JP Morgan Jamie Baker Underweight Maintains $30.00
Mar 3, 2025 JP Morgan Jamie Baker Underweight Downgrade $25.00
Feb 4, 2025 Susquehanna Christopher Stathoulopoulos Neutral Maintains $34.00
Jan 17, 2025 B of A Securities Andrew Didora Underperform Downgrade $31.00
Jan 16, 2025 Citigroup Stephen Trent Sell Downgrade $29.50
Jan 7, 2025 Susquehanna Christopher Stathoulopoulos Neutral Maintains $38.00
Jan 7, 2025 UBS Thomas Wadewitz Sell Maintains $29.00
Dec 30, 2024 Raymond James Savanthi Syth Outperform Maintains $40.00
Dec 11, 2024 Morgan Stanley Ravi Shanker Overweight Reinstates $42.00
Dec 11, 2024 Bernstein David Vernon Market Perform Maintains $33.00

Southwest Airlines Co. (LUV) Competitors

The following stocks are similar to Southwest based on their market capitalization and industry sector. These similar stocks potentially provide investors with alternative investment opportunities within the same market segment.

Southwest Airlines Co. (LUV) Financial Data

Southwest Airlines Co. has a market capitalization of $18.03B with a P/E ratio of 35.6x. The company generates $27.58B in trailing twelve-month revenue with a 2.0% profit margin.

Revenue growth is +1.6% quarter-over-quarter, while maintaining an operating margin of -2.5% and return on equity of +5.6%.

Valuation Metrics

Market Cap $18.03B
Enterprise Value $17.84B
P/E Ratio 35.6x
PEG Ratio 19.9x
Price/Sales 0.7x

Growth & Margins

Revenue Growth (YoY) +1.6%
Gross Margin +13.5%
Operating Margin -2.5%
Net Margin +2.0%
EPS Growth +1.6%

Financial Health

Cash/Price Ratio +46.4%
Current Ratio 0.8x
Debt/Equity 85.4x
ROE +5.6%
ROA +0.9%
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Southwest Airlines Co. logo

Southwest Airlines Co. (LUV) Business Model

About Southwest Airlines Co.

What They Do

Provides low-cost air transportation services.

Business Model

The company operates on a low-cost, no-frills model, utilizing a point-to-point flight route system to offer competitive fares and high aircraft utilization. Revenue is generated primarily through ticket sales, with additional income from ancillary services, appealing to both leisure and business travelers.

Additional Information

Founded in 1967 and headquartered in Dallas, Texas, Southwest Airlines operates a fleet mainly consisting of Boeing 737 aircraft, which enhances maintenance efficiency. It is known for its customer-friendly policies, including free checked bags and no change fees, contributing to its strong market presence and customer loyalty.

Company Information

Sector

Industrials

Industry

Airlines

Employees

71,506

CEO

Mr. Robert E. Jordan

Country

United States

IPO Year

1980

Southwest Airlines Co. (LUV) Latest News & Analysis

Featured Analysis
Powered by Zacks Investment Research

Zacks Investment Ideas feature highlights: Cummins, Caterpillar and Southwest Airlines

Cummins, Caterpillar and Southwest Airlines are part of the Zacks Investment Ideas article.

May 21, 2025 By Zacks Equity Research Press Releases

Insiders are Buying These 3 Stocks

Insiders have a longer holding period than most, and many strict rules apply to their transactions. Recently, insiders of these three companies have scooped up shares.

May 20, 2025 By Derek Lewis Investment Ideas

DAL vs. LUV: Which Airline Stock is a Stronger Play Now?

Both DAL and LUV are being hit by tariff risks. Read on to know which company holds an edge now.

May 20, 2025 By Maharathi Basu Analyst Blog

Latest News

LUV stock latest news image
Quick Summary

The Trump administration has dismissed a lawsuit against Southwest Airlines regarding claims of chronic flight delays.

Why It Matters

The dismissal of the lawsuit may reduce regulatory scrutiny on Southwest Airlines, potentially stabilizing its operations and improving investor confidence in its stock performance.

Source: New York Post
Market Sentiment: Negative
LUV stock latest news image
Quick Summary

Southwest Airlines (NYSE: LUV) participated in the Wolfe Global Transportation and Industrials Conference on May 22, 2025, with EVP and CFO Tom Doxey speaking.

Why It Matters

Southwest Airlines' participation in a key industry conference signals its strategic direction and financial health, influencing investor sentiment and stock performance.

Source: Seeking Alpha
Market Sentiment: Neutral
LUV stock latest news image
Quick Summary

Southwest Airlines reported strong Q1 results with high passenger revenues and cost controls. The company has solid cash reserves and manageable debt, but remains unprofitable. Future revenue growth is uncertain.

Why It Matters

Southwest Airlines' strong Q1 results and solid financial position reduce near-term risk, while strategic initiatives may enhance future revenue, indicating potential growth opportunities.

Source: Seeking Alpha
Market Sentiment: Positive
LUV stock latest news image
Quick Summary

Delta Air Lines (DAL) and Southwest Airlines (LUV) face tariff risks, prompting an assessment of which company may have a competitive advantage.

Why It Matters

Tariff risks can impact profitability and operational costs for DAL and LUV, influencing stock performance and investment decisions. Understanding which company has an edge can guide strategic investments.

Source: Zacks Investment Research
Market Sentiment: Neutral
LUV stock latest news image
Quick Summary

Insiders at three companies have recently purchased shares, indicating confidence in their firms. Insiders typically have longer holding periods and are subject to strict transaction rules.

Why It Matters

Insider buying signals confidence in a company's future performance, potentially indicating undervaluation and attracting investor interest.

Source: Zacks Investment Research
Market Sentiment: Neutral
LUV stock latest news image
Quick Summary

Don Kaufman of @Theotrade is taking a bearish stance on the iShares MSCI Emerging Markets ETF (EEM), predicting that its recent rally will not hold in the mid-term.

Why It Matters

Kaufman's bearish stance on the EEM suggests potential declines in emerging market investments, signaling risk for portfolios heavily weighted in those assets.

Source: Schwab Network
Market Sentiment: Negative

Frequently Asked Questions About LUV Stock

What is Southwest Airlines Co.'s (LUV) stock forecast for 2025?

Based on our analysis of 30 Wall Street analysts, Southwest Airlines Co. (LUV) has a median price target of $26.95. The highest price target is $40.00 and the lowest is $19.00.

Is LUV stock a good investment in 2025?

According to current analyst ratings, LUV has 6 Buy ratings, 11 Hold ratings, and 7 Sell ratings. The stock is currently trading at $31.21. Always conduct your own research and consider your investment goals before making investment decisions.

What is the long-term price prediction for LUV stock?

Wall Street analysts predict LUV stock could reach $26.95 in the next 12 months. This represents a -13.6% decrease from the current price of $31.21. Please note that this is a projection by Wall Street analysts and not a guarantee.

What is Southwest Airlines Co.'s business model?

The company operates on a low-cost, no-frills model, utilizing a point-to-point flight route system to offer competitive fares and high aircraft utilization. Revenue is generated primarily through ticket sales, with additional income from ancillary services, appealing to both leisure and business travelers.

What is the highest forecasted price for LUV Southwest Airlines Co.?

The highest price target for LUV is $40.00 from Savanthi Syth at Raymond James, which represents a 28.2% increase from the current price of $31.21.

What is the lowest forecasted price for LUV Southwest Airlines Co.?

The lowest price target for LUV is $19.00 from Helane Becker at TD Cowen, which represents a -39.1% decrease from the current price of $31.21.

What is the overall LUV consensus from analysts for Southwest Airlines Co.?

The overall analyst consensus for LUV is neutral. Out of 30 Wall Street analysts, 6 rate it as Buy, 11 as Hold, and 7 as Sell, with a median price target of $26.95.

How accurate are LUV stock price projections?

Stock price projections, including those for Southwest Airlines Co., are based on various factors including financial models, market conditions, and analyst forecasts. While these predictions provide valuable insights, they should be considered alongside your own research and risk tolerance.

Important Disclaimer

The information provided by Ticker Nerd is for educational and informational purposes only. It should not be considered financial or investment advice. Past performance is not indicative of future results. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. Analyst ratings and price forecasts are sourced from Wall St analysts and other experts. These projections are speculative and do not guarantee future stock performance.

Last updated: May 23, 2025 6:34 PM UTC
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