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Dallas, Texas-based Southwest Airlines Co. (LUV) is a passenger airline company that provides scheduled air transportation services. Valued at a market cap of $18.6 billion, the company maintains a high-frequency, low-cost operational model while expanding its global reach through new international airline partnerships.
This airline company has outperformed the broader market over the past 52 weeks. Shares of LUV have surged 37.4% over this time frame, while the broader S&P 500 Index ($SPX) has gained 29.1%. However, on a YTD basis, the stock is down 9.4%, lagging SPX’s 4.3% rise.
Zooming in further, LUV has outpaced the U.S. Global Jets ETF (JETS), which soared 26.2% over the past 52 weeks and declined 11.2% on a YTD basis.
On Apr. 22, LUV delivered its Q1 2026 earnings results, and its shares plunged 4.1% in the following trading session. Demand for its new product offerings drove record first-quarter revenues, double‑digit unit revenue growth, and significant improvement in earnings and margins. These results were achieved despite significantly higher fuel costs, underscoring the momentum across the business and the strength of its transformed business model. The company’s operating revenue advanced 12.8% year-over-year to $7.2 billion, topping analyst estimates by a slight margin, while its EPS of $0.45 came in line with Wall Street forecasts.
For the current fiscal year, ending in December, analysts expect LUV’s EPS to grow 214% year over year to $2.92. The company’s earnings surprise history is mixed. It met or exceeded the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 24 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 10 “Strong Buy,” one "Moderate Buy,” nine “Hold,” one "Moderate Sell,” and three “Strong Sell” ratings.
The configuration is slightly less bullish than two months ago, with 11 analysts suggesting a "Strong Buy” rating.
On Apr. 27, Jefferies Financial Group Inc. (JEF) analyst Sheila Kahyaoglu maintained a “Hold” rating on LUV, but lowered its price target to $37.
The mean price target of $44.48 indicates an 18.9% potential upside from the current levels, while its Street-high price target of $60 suggests a 60.4% potential upside from the current levels.
