Where Southwest Airlines Stands With Analysts

During the last three months, 7 analysts shared their evaluations of Southwest Airlines LUV, revealing diverse outlooks from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Southwest Airlines, revealing an average target of $32.71, a high estimate of $47.00, and a low estimate of $23.00. A 1.39% drop is evident in the current average compared to the previous average price target of $33.17.

Decoding Analyst Ratings: A Detailed Look

A clear picture of Southwest Airlines's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Southwest Airlines. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Southwest Airlines compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Southwest Airlines's stock. This analysis reveals shifts in analysts' expectations over time.

Capture valuable insights into Southwest Airlines's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with 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.

Unraveling the Financial Story of Southwest Airlines

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Southwest Airlines's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 4.9%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Southwest Airlines's net margin excels beyond industry benchmarks, reaching 2.96%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Southwest Airlines's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 1.77%, the company showcases efficient use of equity capital and strong financial health.

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: Southwest Airlines's debt-to-equity ratio is below the industry average. With a ratio of 0.84, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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