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Dallas, Texas-based Southwest Airlines Co. (LUV) is a leading passanger airlines company valued at a market cap of $20.5 billion. It offers reliable and affordable air travel across a broad network of domestic and international destinations while maintaining a strong focus on operational efficiency and customer satisfaction.
Companies valued at $10 billion or more are typically considered "large-cap stocks," and Southwest Airlines fits perfectly into this category. Southwest Airlines is a key player in the aviation industry, establishing itself as a leader by providing affordable, efficient air travel while prioritizing exceptional customer service and operational reliability.
Shares of LUV are trading 5.3% below their 52-week high of $36.12, which they hit on Dec. 5. The stock has gained 14.2% over the past three months, surpassing the Themes Airlines ETF’s (AIRL) 12.3% gain over the same time frame.
LUV has risen 20.2% in the past six months and increased 17.3% over the last 52 weeks. In contrast, AIRL has grown by 24.4% in the past year and 15.3% over the same period.
However, LUV has been trading above its 50-day and 200-day moving averages since late August, which indicates a bullish trend.
Southwest Airlines' stock declined 5.6% after the company reported Q3 earnings on Oct. 24. Its adjusted earnings of 15 cents beat the Street expectations, and revenue of $6.9 billion also exceeded estimates.
LUV has lagged behind its rival, JetBlue Airways Corporation (JBLU), which has gained 36.5% over the past 52 weeks.
Given LUV’s recent underperformance relative to its industry peers, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from 21 analysts in coverage. It currently trades above its mean price target of $32.23.
