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NYSE:LUV
Southwest Airlines (LUV)
Financials 
Technical Analysis 
Aug 20, 2026, 12:00 amThis summary was created by AI, based on 1 opinions in the last 12 months.
Southwest Airlines, with the ticker symbol LUV-N, has recently reported a strong quarter, reflecting positive performance under its current CEO. The company's forecast appears optimistic, with expectations of earnings per share (EPS) that could potentially quadruple this year. However, while the overall performance numbers are decent, they do not quite match the soaring expectations set by the forecasts. Experts acknowledge the company's solid execution and positive trajectory, but caution should be exercised given that the results, despite being viewed positively, may not fully align with the bullish predictions. Overall, the sentiment surrounding Southwest Airlines remains encouraging, driven by a strong management team and insightful market strategies.
In the last couple of weeks she has started hearing comments on airline capacity being higher and what impact that has on pricing and margins. This one is in a good position and has a low cost structure. The group has had a run and she would not be surprised at a pullback in US airlines.
Fourth-largest US airline. Mainly short-haul type of flights. 100% of its revenues are from the US. They have the most conservative and probably the healthiest balance sheet in terms of debt to capital ratio. Feels recent fears about the spreading Ebola epidemic has moved the stock downwards. Good valuation.
Stan Wong
Peter Arender, CFA
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This, along with the other airlines, dropped about 8%-10% yesterday, based on concerns about capacity and pricing pressures based on too much competition. That was well overdone. It oversold down to the 200 day moving average. All revenues are US domestic, so you don’t have to worry about the US$ tailwinds. Very healthy balance sheet. Dividend yield of 0.81%.