Southwest Airlines (NYSE:LUV) Stock Rating Upgraded by Zacks Research

Southwest Airlines (NYSE:LUV) was upgraded by Zacks Research from a “strong sell” rating to a “hold” rating in a note issued to investors on Wednesday, Zacks reports. Zacks Research also issued estimates for Southwest Airlines’ Q4 2026 earnings at $0.80 EPS, FY2026 earnings at $2.85 EPS, Q1 2027 earnings at $0.38 EPS, Q2 2027 earnings at $1.19 EPS, Q3 2027 earnings at $1.11 EPS, Q4 2027 earnings at $1.03 EPS, FY2027 earnings at $3.71 EPS, Q1 2028 earnings at $0.65 EPS, Q2 2028 earnings at $1.88 EPS, Q3 2028 earnings at $1.46 EPS and FY2028 earnings at $5.56 EPS.

LUV has been the subject of several other research reports. Susquehanna lowered their price objective on Southwest Airlines from $50.00 to $45.00 and set a “neutral” rating on the stock in a report on Wednesday, October 7th. UBS Group lifted their price target on shares of Southwest Airlines from $52.00 to $54.00 and gave the company a “buy” rating in a research report on Friday, October 23rd. Wall Street Zen cut shares of Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Saturday, September 5th. TD Cowen boosted their price objective on shares of Southwest Airlines from $47.00 to $48.00 and gave the stock a “buy” rating in a research note on Thursday, October 29th. Finally, Rothschild & Co Redburn upgraded shares of Southwest Airlines from a “sell” rating to a “neutral” rating and raised their target price for the company from $35.00 to $40.00 in a research note on Friday, September 18th. Eleven equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Southwest Airlines presently has an average rating of “Hold” and an average target price of $48.20.

Southwest Airlines Trading Down 4.4%

Shares of NYSE:LUV opened at $44.39 on Wednesday. The stock has a market capitalization of $21.73 billion, a PE ratio of 21.34, a P/E/G ratio of 0.67 and a beta of 1.23. Southwest Airlines has a 1 year low of $30.84 and a 1 year high of $55.11. The firm has a fifty day moving average price of $41.07 and a 200 day moving average price of $43.52. The company has a current ratio of 0.47, a quick ratio of 0.40 and a debt-to-equity ratio of 0.51.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Wednesday, October 21st. The airline reported $0.66 earnings per share for the quarter, beating the consensus estimate of $0.57 by $0.09. Southwest Airlines had a return on equity of 18.05% and a net margin of 3.34%. The company had revenue of $8.42 billion for the quarter, compared to analyst estimates of $8.25 billion. During the same period last year, the company earned $0.11 earnings per share. The business’s revenue was up 21.2% compared to the same quarter last year. Analysts expect that Southwest Airlines will post 2.77 EPS for the current fiscal year.

Institutional Investors Weigh In On Southwest Airlines

A number of institutional investors have recently added to or reduced their stakes in LUV. Scarborough Advisors LLC bought a new stake in shares of Southwest Airlines in the 1st quarter worth approximately $28,000. Fiduciary Financial Advisors bought a new stake in shares of Southwest Airlines during the second quarter valued at approximately $32,000. Archer Investment Corp bought a new stake in shares of Southwest Airlines during the second quarter valued at approximately $32,000. Grove Bank & Trust increased its position in shares of Southwest Airlines by 109.4% during the second quarter. Grove Bank & Trust now owns 871 shares of the airline’s stock valued at $45,000 after purchasing an additional 455 shares during the period. Finally, MidFirst Bank acquired a new position in shares of Southwest Airlines in the second quarter valued at $48,000. 80.82% of the stock is owned by institutional investors and hedge funds.

Southwest Airlines News Summary

Here are the key news stories impacting Southwest Airlines this week:

• Positive Sentiment: Zacks Research raised its 2028 EPS estimates for Q2 to $1.88 from $1.29 and Q3 to $1.46 from $1.07, signaling improved expectations for those quarters. Southwest Airlines analyst estimates
• Neutral Sentiment: An article points to falling oil prices as a potential tailwind for travel companies through lower fuel costs. The effect on Southwest was not quantified in the article. 3 Consumer And Travel Stocks To Watch As Oil Falls And The Dollar Softens
• Negative Sentiment: Zacks cut its full-year EPS forecasts to $2.85 for 2026 from $3.31, $3.71 for 2027 from $5.02, and $5.56 for 2028 from $5.90. It also reduced estimates for Q4 2026, Q1 2027, Q4 2027, and Q1 2028. The broad downward revisions—and Zacks’ “Strong Sell” rating—suggest weaker earnings expectations, despite the increases to Q2 and Q3 2028 forecasts. Southwest Airlines analyst estimates

Southwest Airlines Company Profile

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.