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Southwest Airlines Co (LUV) Stock Forecast & Price Prediction

Live LUV Stock Price & Analysis

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$30.13

-0.87 (-2.81%)

12 Month Price Forecast For LUV

$30.13
Current Price
$18.17B
Market Cap
23 Ratings
Buy 4
Hold 12
Sell 7
Wall St Analyst Ratings

Distance to LUV Price Forecasts

+39.4%
To High Target of $42.00
+2.9%
To Median Target of $31.00
-20.3%
To Low Target of $24.00

LUV Price Momentum

-2.1%
1 Week Change
-9.0%
1 Month Change
-7.3%
1 Year Change
-10.4%
Year-to-Date Change
-16.6%
From 52W High of $36.12
+27.8%
From 52W Low of $23.58

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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.

Data last updated: February 11, 2025 10:35 AM UTC

LUV Analyst Ratings & Price Targets

Based on our analysis of 30 Wall Street analysts, LUV has a neutral consensus with a median price target of $31.00 (ranging from $24.00 to $42.00). The overall analyst rating is Hold (5.6/10). Currently trading at $30.13, the median forecast implies a 2.9% upside. This outlook is supported by 4 Buy, 12 Hold, and 7 Sell ratings.

The most optimistic forecast comes from Ravi Shanker at Morgan Stanley, projecting a 39.4% upside. Conversely, the most conservative target is provided by Sheila Kahyaoglu at Jefferies, suggesting a 20.3% 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 Consensus

4
Buy
12
Hold
7
Sell

LUV Price Target Range

Low
$24.00
Average
$31.00
High
$42.00
Current: $30.13

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
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 Bernstein David Vernon Market Perform Maintains $33.00
Dec 11, 2024 Morgan Stanley Ravi Shanker Overweight Reinstates $42.00
Dec 6, 2024 Barclays Brandon Oglenski Equal-Weight Maintains $35.00
Nov 26, 2024 UBS Thomas Wadewitz Sell Assumes $27.00
Nov 15, 2024 Goldman Sachs Catherine O'Brien Sell Reinstates $28.00
Oct 25, 2024 JP Morgan Jamie Baker Neutral Maintains $26.00
Oct 15, 2024 Barclays Brandon Oglenski Equal-Weight Maintains $32.00
Oct 9, 2024 Susquehanna Christopher Stathoulopoulos Neutral Maintains $30.00
Oct 9, 2024 Jefferies Sheila Kahyaoglu Hold Upgrade $32.00
Oct 3, 2024 Citigroup Stephen Trent Neutral Maintains $31.50
Oct 2, 2024 Jefferies Sheila Kahyaoglu Underperform Maintains $24.00
Sep 30, 2024 TD Cowen Helane Becker Hold Maintains $25.00
Sep 3, 2024 Evercore ISI Group Duane Pfennigwerth Outperform Upgrade $35.00
Aug 5, 2024 Bernstein David Vernon Market Perform Maintains $24.00

Stocks Similar to Southwest Airlines Co

The following stocks are similar to Southwest Airlines 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 $18.17B with a P/E ratio of 39.9x. The company generates $27.38B in trailing twelve-month revenue with a -0.2% profit margin.

Revenue growth is +5.3% quarter-over-quarter, while maintaining an operating margin of +0.3% and return on equity of -0.4%.

Valuation Metrics

Market Cap $18.17B
Enterprise Value $18.69B
P/E Ratio 39.9x
PEG Ratio 19.1x
Price/Sales 0.7x

Growth & Margins

Revenue Growth (YoY) +5.3%
Gross Margin +16.3%
Operating Margin +0.3%
Net Margin -0.2%
EPS Growth -65.3%

Financial Health

Cash/Price Ratio +51.9%
Current Ratio 0.9x
Debt/Equity 87.4x
ROE -0.4%
ROA +0.5%

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Southwest Airlines Co logo

Southwest Airlines Co (LUV) Company Overview

About Southwest Airlines Co

What They Do

Operates as a passenger airline company.

Business Model

The company generates revenue primarily through the sale of passenger tickets for scheduled air transportation services across the United States and select international destinations. Additionally, it earns income from ancillary services, such as early check-in options, upgraded boarding, and pet transportation, as well as through its loyalty program, which encourages repeat business.

Additional Information

Southwest Airlines operates a fleet of 817 Boeing 737 aircraft and serves 121 destinations. The company provides various digital platforms for customer convenience, including websites and mobile apps, and has a strong emphasis on customer loyalty through its Rapid Rewards program. Established in 1967 and headquartered in Dallas, Texas, Southwest Airlines is a well-established player in the airline industry.

Company Information

Sector

Industrials

Industry

Airlines

Employees

73,463

CEO

Mr. Robert E. Jordan

Country

United States

IPO Year

1980

Southwest Airlines Co (LUV) Latest News & Analysis

LUV stock latest news image
Quick Summary

Southwest Airlines appointed Tom Doxey as Executive VP & CFO, effective March 10, 2025. He brings significant experience in aviation finance and operations.

Why It Matters

The appointment of Tom Doxey as CFO signals strategic shifts at Southwest Airlines, potentially impacting financial performance and operational efficiency, which could influence stock valuation.

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

The Schall Law Firm is investigating Southwest Airlines (NYSE:LUV) for potential securities law violations regarding misleading statements to investors.

Why It Matters

The investigation into Southwest Airlines for potential securities law violations could lead to legal repercussions and impact stock performance, influencing investor sentiment and decisions.

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

The Schall Law Firm is investigating Southwest Airlines (NYSE:LUV) for potential securities law violations, including false statements or undisclosed information affecting investors.

Why It Matters

The investigation into Southwest Airlines for potential securities law violations could signal legal and financial risks, impacting stock performance and investor confidence.

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

The Schall Law Firm is investigating Southwest Airlines (NYSE:LUV) for potential securities law violations, including possible misleading statements affecting investors.

Why It Matters

The investigation into Southwest Airlines for potential securities law violations may signal legal risks, impacting stock performance and investor confidence in the company.

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

Southwest Airlines declared a quarterly cash dividend of $0.18 per share for shareholders of record as of March 12, 2025, to be paid on April 2, 2025.

Why It Matters

Southwest Airlines' dividend declaration signals financial stability and return of capital to shareholders, potentially boosting investor confidence and attracting income-focused buyers.

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

Southwest Airlines (NYSE: LUV) has extended its flight schedule through Nov. 1, 2025, expanding nonstop flights in key cities domestically and internationally.

Why It Matters

Southwest Airlines' extended flight schedule and expansion indicate growth potential, which could enhance revenue, improve market share, and attract investor interest.

Source: PRNewsWire
Market Sentiment: Neutral

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 $31.00. The highest price target is $42.00 and the lowest is $24.00.

Is LUV stock a good investment in 2025?

According to current analyst ratings, LUV has 4 Buy ratings, 12 Hold ratings, and 7 Sell ratings. The stock is currently trading at $30.13. Always conduct your own research and consider your investment goals before making investment decisions.

What is the price prediction for LUV stock?

Wall Street analysts predict LUV stock could reach $31.00 in the next 12 months. This represents a 2.9% increase from the current price of $30.13. 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 generates revenue primarily through the sale of passenger tickets for scheduled air transportation services across the United States and select international destinations. Additionally, it earns income from ancillary services, such as early check-in options, upgraded boarding, and pet transportation, as well as through its loyalty program, which encourages repeat business.

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

The highest price target for LUV is $42.00 from Ravi Shanker at Morgan Stanley, which represents a 39.4% increase from the current price of $30.13.

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

The lowest price target for LUV is $24.00 from Sheila Kahyaoglu at Jefferies, which represents a -20.3% decrease from the current price of $30.13.

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, 4 rate it as Buy, 12 as Hold, and 7 as Sell, with a median price target of $31.00.

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.