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With a market cap of $20.5 billion, Southwest Airlines Co. (LUV) operates as a passenger airline company that provides scheduled air transportation services in the United States and international markets. Founded in 1967, the Dallas, Texas-based company operates a total fleet of 803 Boeing 737 aircrafts in 117 destinations in 42 states.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and LUV perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the airline sector.
LUV shares are currently trading 4.8% below its 52-week high of $36.12, which they touched on Dec. 5. The stock has climbed marginally over the past three months, outpacing the broader S&P 500 Index ($SPX), which declined 5.4% during the same period.
LUV has soared 14.9% over the past six months, beating $SPX's marginal decline. Similarly, over the past 52 weeks, LUV's 21.1% gain easily surpasses $SPX's 9.8% increase.
LUV has remained above its 200-day moving average since early March and above its 50-day moving average since mid-March, indicating an uptrend.
LUV shares declined 1.2% following its Q4 earnings release on Jan. 30. The company reported a net revenue of $6.9 billion for the quarter. Additionally, the company expects a 3% to 5% increase in its operating margin for the fiscal 2025. LUV’s EPS amounted to $0.56, surpassing the Wall Street estimates by 24.4%.
Its rival, Delta Air Lines, Inc. (DAL), has declined 7.2% over the past six months and surged 4.7% over the past year, falling short of LUV.
LUV has a consensus rating of “Hold” from 21 analysts in coverage. The stock is currently trading above its mean price target of $32.89.
