Southwest Airlines Stock: A Deep Dive Into Analyst Perspectives (9 Ratings)

Southwest Airlines LUV underwent analysis by 9 analysts in the last quarter, revealing a spectrum of viewpoints 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.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $26.09, along with a high estimate of $32.00 and a low estimate of $19.00. Highlighting a 9.44% decrease, the current average has fallen from the previous average price target of $28.81.

Breaking Down Analyst Ratings: A Detailed Examination

The perception of Southwest Airlines by financial experts is analyzed through recent analyst actions. The following summary presents 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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' 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.

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.

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 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.

Breaking Down Southwest Airlines's Financial Performance

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 displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 10.92%. This indicates a notable 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 is impressive, surpassing industry averages. With a net margin of -3.65%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Southwest Airlines's ROE excels beyond industry benchmarks, reaching -2.23%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Southwest Airlines's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -0.64% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Southwest Airlines's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.9.

The Significance of Analyst Ratings Explained

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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