Beyond The Numbers: 9 Analysts Discuss Southwest Airlines Stock

In the latest quarter, 9 analysts provided ratings for Southwest Airlines LUV, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $29.28, a high estimate of $35.00, and a low estimate of $24.00. This upward trend is evident, with the current average reflecting a 21.19% increase from the previous average price target of $24.16.

Exploring Analyst Ratings: An In-Depth Overview

An in-depth analysis of recent analyst actions unveils how financial experts perceive Southwest Airlines. The following summary 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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Southwest Airlines compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Southwest Airlines's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Southwest Airlines's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Southwest Airlines analyst ratings.

Get to Know Southwest Airlines Better

Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 800 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 operated in a single, open-seating cabin configuration in a point-to-point network. In 2025, Southwest will modify its cabins to offer some seats with extra legroom and will update its ticketing process to offer assigned seats.

Southwest Airlines's Economic Impact: An Analysis

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Southwest Airlines's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 5.29%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: Southwest Airlines's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 0.98%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Southwest Airlines's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.64%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Southwest Airlines's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.19%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Southwest Airlines's debt-to-equity ratio is below the industry average at 0.87, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

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.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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