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Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

Overall, experts believe that Southwest Airlines (LUV-N) could experience a decent recovery and upside potential as travel demand recovers. However, there are concerns about the airline industry's historically bad reputation for investors' capital and the impact of higher gas prices on Southwest's margins. Despite its good reputation, the airline has been facing major reliability problems, leading to flight cancellations and delays. Despite these challenges, LUV is seen as one of the better stocks in the industry.

Consensus
Mixed
Valuation
Fair Value
Similar
Delta,AIR-D
DON'T BUY
Southwest Airlines
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

As travel demand recovers LUV could make a nice comeback if revenue continues to recover and pass the pre-pandemic level. LUV has a reputation as one of the low-cost operators in the airline industry. If management executes well, the shares could experience decent upside potential. That said, LUV could be okay as a turnaround/recovery play (the timing would be uncertain). However, the airline business overall had a bad reputation for investors’ capital. Historically, the industry had witnessed many companies that went through boom and bust cycles, went through bankruptcy and recovered again and again. We are not fans of the industry, but would consider LUV one of the better stocks. Short term momentum is solid and the dividend is decent while one holds the stock. If exposure is already there, however, we would not add.
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DON'T BUY
Southwest Airlines

Higher gas prices are pressuring their margins while revenue per seat mile is down alot. Big business is getting hurt by the sudden rise in crude oil prices.

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COMMENT
Southwest Airlines

Sure, there's a travel boom, but the airlines haven't fully benefit due to major unreliability problems. For example, LUV cancelled 16,000 flights over the holidays last year due to bad weather and technical issues. Just last week, technical problems led to nationwide delays. Pity, because LUV has long held a good reputation, and he likes Southwest.

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WAIT
Southwest Airlines
It used to be best of breed, but it suffered operational issues last year (the pilots union nearly mutinied). The CEO has stepped down, but he will wait till they report Thursday.
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BUY
Southwest Airlines
options There's been an acceleration in options action in airlines here, driven by fuel costs. He likes the CEO of Southwest. The market bought 17,000 of the May 15 calls. He gets a little extra time, a month, when it's usually 1-2 weeks long, so he likes this. A tailwind: people are getting more comfortable flying, and when people don't need to wear masks when flying we will see a nice move up in airline stocks.
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
Southwest Airlines
(A Top Pick Oct 28/21, Down 10.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LUV has triggered its stop at $42. To remain disciplined, we recommend covering the position at this time. We will look for better opportunities. When combined with the previous buy recommendation, this results in a net investment loss of 15%.
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premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Southwest Airlines
Stockchase Research Editor: Michael O'Reilly We reiterate LUV as a TOP PICK. Recently reported earnings showed improvements fast than analysts expected. With forward EPS expected at over $2.50 per share, the company is expected to be valued at under 19x earnings. We also like that it has continued to build cash reserves, while paying down debt. We continue to recommend a stop at $42, looking to achieve $64 -- upside potential over 33%. Yield 0% (Analysts’ price target is $63.62)
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COMMENT
Southwest Airlines
It reports Tuesday. Easing travel restrictions will help. LUV is okay, but United has more international flights.
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BUY
Southwest Airlines

It's the best-run American Airlines with the best routes. It's been beaten up, so pick up shares. FDA full approval of Pfizer's Covid vaccine will help.

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BUY
Southwest Airlines
Reopening stocks have come off as the Delta variant increase Covid cases. As cases peak, caller expects another run-up, so is it too early start a position in LUV? No, it isn't. Buy this. The CEO is doing a great job. The stock is selling over fears of no travellers, but the TSA travel numbers disprove this--people are travelling.
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premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Southwest Airlines
Stockchase Research Editor: Michael O'Reilly LUV recently reported EPS of $0.57, after receiving $348 million in payroll support. Management noted June was a turning point in demand. Analysts expect next year's annual EPS to exceed $3.25, putting the stock at 16x forward earnings currently. We would buy this with a stop loss at $42, looking to achieve $70 -- upside potential over 33%. Yield 0% (Analysts’ price target is $69.98)
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BUY
Southwest Airlines
Any runway left? It's at $61, and he says it'll go to $75. He recommended this in January at the start of the reopening and still recommends it.
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RISKY
Southwest Airlines
The airline sector is acting well. Despite the great recovery off the bottom, it doesn't reflect damage done to balance sheets. Will take time to work through. Giant wave of discretionary spending on travel once we come out of the pandemic. Short-term, the setup is good, ready for another leg higher. Other groups have a better setup. Be careful.
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BUY
Southwest Airlines

Several airlines qualify for the reopening play, but LUV boasts a CEO is smart to nail down new routes now. American Airlines is great, too, but not its balance sheet. LUV also benefits from the oil patch getting better.

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COMMENT
Southwest Airlines
He just interviewed the CEO who did not sound bullish at all. Don't buy this above $32.
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Southwest Airlines(LUV-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 2

Stockchase rating for Southwest Airlines is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Southwest Airlines(LUV-N) Frequently Asked Questions

What is Southwest Airlines stock symbol?

Southwest Airlines is a American stock, trading under the symbol LUV-N on the New York Stock Exchange (LUV). It is usually referred to as NYSE:LUV or LUV-N

Is Southwest Airlines a buy or a sell?

In the last year, 2 stock analysts published opinions about LUV-N. 0 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Southwest Airlines.

Is Southwest Airlines a good investment or a top pick?

Southwest Airlines was recommended as a Top Pick by on . Read the latest stock experts ratings for Southwest Airlines.

Why is Southwest Airlines stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Southwest Airlines worth watching?

2 stock analysts on Stockchase covered Southwest Airlines In the last year. It is a trending stock that is worth watching.

What is Southwest Airlines stock price?

On 2024-04-19, Southwest Airlines (LUV-N) stock closed at a price of $29.38.