Where it trades today
trading 45% of the way up its 52-week range
How the price has moved
What to weigh before acting
What Matters Now
- Order-book quality, backlog conversion, and operating leverage usually tell you more than a single quarter of revenue growth.
- LUV trades at 25.6x earnings, well above the industrials average of 18.5x, so the market is already pricing in above-consensus execution.
- Recent realized volatility is running around 28.7%, above the sector norm of 22.0%, so position sizing matters more than usual.
- Relative performance versus CAT, HON matters here because leadership inside industrials rarely stays static for long.
Portfolio Use Case
- LUV is more useful for investors comparing conviction names inside industrials than for someone looking for a passive “set and forget” holding.
- The risk profile looks balanced enough for a diversified core-plus portfolio, provided the position size reflects sector concentration.
- This page is most useful for deciding whether the stock deserves a permanent slot in the portfolio or just a place on the watchlist.
What Would Change the View
- A reset in earnings expectations or a faster peer catch-up could compress the premium valuation currently embedded in LUV.
- Volatility is already above the sector norm, so even a correct long-term thesis can be painful if the position size is too aggressive.
- The view would need revisiting if peers such as CAT, HON start winning the marginal flow or posting cleaner operating momentum.
Methodology
- Price, market cap, beta, yield, and liquidity fields for LUV come from Yahoo Finance quote and summary data.
- 30-day volatility is calculated from recent daily returns and annualized using a 252-trading-day convention.
- Sector context uses stored benchmark averages for Industrials so each page compares the ticker against a stable peer baseline rather than against the whole market.
- Peer comparisons use the Portfolio Terminal coverage set and highlight nearby listed alternatives such as CAT, HON.
Sources
- Yahoo Finance quote dataopen →
Live quote, valuation, beta, yield, and volume fields used for LUV. Last refresh: Sep 18, 2026, 10:56 PM.
- Portfolio Terminal methodologyopen →
Explains how analytics, refresh cadence, and portfolio interpretation work across the product.
- Peer set and coverage context
Comparative context for this page is anchored around nearby tracked names such as CAT, HON.
What Southwest Airlines does
Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee. In addition, the company offers ancillary services, such as in-flight purchases, baggage fees, EarlyBird Check-In, and upgraded boarding, as well as transportation of pets and unaccompanied minors. As of December 31, 2025, the company operated a total fleet of 803…
What analysts expect
LUV carries a hold consensus from 23 analysts, with an average price target of $49.83 versus $40.98 today (+21.6%). Targets are estimates and can move quickly after earnings.
Consensus aggregated by Yahoo Finance. Targets are estimates, not forecasts.
How the business is doing
LUV generated $30.07B in trailing revenue (16.4% year over year), with a 2.8% net margin, and -$834.75M of free cash flow, against $3.10B of net debt.
The numbers, year by year
| Fiscal year | Revenue | Gross profit | Operating income | Net income | EPS | Free cash flow |
|---|---|---|---|---|---|---|
| 2025 | $28.06B | $4.89B | $428.00M | $441.00M | $0.82 | -$831.00M |
| 2024 | $27.48B | $4.46B | $321.00M | $465.00M | $0.78 | -$1.59B |
| 2023 | $26.09B | $4.22B | $224.00M | $465.00M | $0.84 | -$356.00M |
| 2022 | $23.81B | $4.75B | $1.02B | $539.00M | $0.91 | -$156.00M |
When it reports next
Estimates aggregated by Yahoo Finance. Dates move and estimates change until the report lands.
How it sits in industrials
Manufacturing, aerospace, defense, and infrastructure companies.
The companies it competes with
LUV beside the industrials names it is usually measured against.
What the chart is saying
Southwest Airlines trades at $40.98, 25.6% below its 52-week high. With a beta of 1.12, it shows about average sensitivity to what the wider market does.
Questions people ask about it
Is LUV a good buy right now?
Southwest Airlines trades at 25.6x earnings. This is near market average. Current risk level is Medium based on 28.7% volatility.
Does LUV pay dividends?
Yes, Southwest Airlines offers a dividend yield of 1.78%. That is roughly $0.73 per share a year.
How volatile is LUV?
With 30-day annualized volatility of 28.7% and beta of 1.12, LUV is classified as Medium risk. Expect larger swings than the broader market during volatile periods.
What is the analyst price target for LUV?
The average analyst price target for Southwest Airlines (LUV) is $49.83 based on 23 analyst estimates, about 21.6% above the current price of $40.98. The published range runs from $35.00 to $65.00.
How much revenue does LUV generate?
Southwest Airlines reported $30.07B in trailing twelve-month revenue. Revenue growth is running at 16.4% year over year. Net margin sits at 2.8%. Figures are aggregated from company filings by Yahoo Finance and refresh on an hourly cadence.