Where Southwest Airlines Stands With Analysts

12 analysts have shared their evaluations of Southwest Airlines LUV during the recent three months, expressing a mix of bullish and bearish perspectives.

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 $31.75, a high estimate of $42.00, and a low estimate of $25.00. This upward trend is evident, with the current average reflecting a 6.9% increase from the previous average price target of $29.70.

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: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Southwest Airlines. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Southwest Airlines compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Southwest Airlines's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Southwest Airlines's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Southwest Airlines analyst ratings.

All You Need to Know About 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.

Key Indicators: Southwest Airlines's Financial Health

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 remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 10.55%. This signifies 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: Southwest Airlines's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -3.41% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Southwest Airlines's ROE excels beyond industry benchmarks, reaching -2.16%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of -0.63%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.87.

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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