Southwest Airlines LUV has observed the following analyst ratings within the last quarter:

In the last quarter, Southwest Airlines received 12-month price targets from 9 analysts. The average target price is $29.33, with a high estimate of $47.00 and a low estimate of $20.00.

Learn about 9 analysts' views on Southwest Airlines over the past 3 months. Increased bullish ratings reflect positive sentiment, while increased bearish ratings suggest a negative outlook.

Experiencing a 8.66% decline, the current average is now lower than the previous average price target of $32.11.

Breaking Down Analyst Ratings: A Detailed Examination

Take a deep dive into the evaluations of financial experts and analysts as we dissect their recent assessments for Southwest Airlines. The Ratings Table below offers an extensive overview of the decisions taken by prominent analysts, their current ratings, and price targets. Offer crucial insights into emerging market trends and investor sentiment by understanding how these experts perceive the company.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Southwest Airlines. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Southwest Airlines compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Southwest Airlines's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Southwest Airlines's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Southwest Airlines analyst ratings.

Unveiling the Story Behind Southwest Airlines

Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates over 700 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights, using a point-to-point network. Southwest operates a low-cost carrier business model.

Understanding the Numbers: Southwest Airlines's Finances

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Southwest Airlines's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 4.9%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.96%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Southwest Airlines's ROE stands out, surpassing industry averages. With an impressive ROE of 1.77%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Southwest Airlines's ROA excels beyond industry benchmarks, reaching 0.53%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.84, Southwest Airlines adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Core of Analyst Ratings: What Every Investor Should Know

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.