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Southwest Airlines Co. (LUV), headquartered in Dallas, Texas, is a prominent player in the aviation industry. With a market cap of $17.91 billion, Southwest Airlines is known for its customer-centric approach. 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 plays a pivotal role in the aviation industry, positioning itself as a key leader by offering affordable and efficient air travel with a strong focus on customer service and operational reliability.
Shares of LUV are trading 14.9% below their 52-week high of $35.18, which they hit on Feb. 22. The stock has gained 5.2% over the past three months, lagging the Industrial Select Sector SPDR Fund’s (XLI) 10.6% gain over the same time frame.
In the longer term, LUV is up 3.6% on a YTD basis, and the shares have gained by 12.7% over the past 52 weeks. In comparison, the XLI has gained 18.1% in 2024 and rallied 33.7% over the past year.
However, LUV has been trading above its 50-day moving average since late August and its 200-day moving average recently, which indicates a bullish trend.
Southwest Airlines stock climbed more than 5% after raising its Q3 revenue-per-capacity guidance and announcing a new $2.5 billion stock buyback program. On Jul. 25, Southwest Airlines reported its Q2 results. Its adjusted EPS of $0.58 beat the consensus estimates of $0.50. The company’s revenue of $7.35 billion surpassed the Wall Street forecasts of $7.32 billion. LUV shares gained more than 5% on the day the results were released.
LUV has lagged behind its rival, JetBlue Airways Corporation (JBLU), which has gained 46.5% over the past 52 weeks.
Given LUV’s recent underperformance relative to the broader sector, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from 17 analysts in coverage. The mean price target is $27.65, which indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
