Southwest Airlines (LUV-N)
NYSE:LUV
30.08
0.23
(0.77%) 1d
Financials
Technical Analysis
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This summary was created by AI, based on 2 opinions in the last 12 months.
Southwest Airlines (LUV-N) is facing significant challenges, highlighted by a steep decline in share price—down 50% over the last three years and even lower than during the 2020 pandemic lows. The recent interest from activist investor Elliott Management, which has taken a substantial stake in the company, indicates a belief in its potential for recovery. However, experts are critical of the current management's performance, particularly after a disappointing Q1 for the airline, with the CEO's optimistic claims appearing out of touch with reality. There is a strong sentiment that a shake-up in the board and management is necessary for the company to align itself better with the thriving travel sector. Given Elliott's involvement, many experts view this as a buying opportunity.
Activist Elliott Management just took a big stake in this. Shares have fallen 50% in the past 3 years, and even lower than in March 2020 during the depths of the Covid shutdown. Elliott is a smart outfit and he agrees with their detailed assessment. LUV's underperformance is stunning during a travel boom and management's lack of action is off--they seem oblivious. Their had a bad Q1, and yet the CEO said they had a good quarter, despite the financial results. Really?? He agrees LUV needs a board anad management shake up and thorough review. Given Elliott, this is a buy.
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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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.
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.
Southwest Airlines(LUV-N) Rating
Ranking : 3 out of 5
Bullish - Buy Signals / Votes : 1
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 1
Total Signals / Votes : 2
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. 1 analyst recommended to BUY the stock. 1 analyst 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 2025-05-05, Southwest Airlines (LUV-N) stock closed at a price of $30.08.
The airlines had a big cyclical move down.