January 25, 2026 a 07:43 pm
LUV: Fundamental Ratio Analysis - Southwest Airlines Co.
The Southwest Airlines Co. stock is positioned within a challenging but potentially rewarding airline sector. The company has established a robust network of destinations and offers a wide array of services, supporting an optimistic outlook for future growth despite current market uncertainties.
Fundamental Rating
The latest fundamental evaluation of Southwest Airlines Co. indicates moderate performance based on key financial metrics.
| Category | Score | Visualization |
|---|---|---|
| Overall Rating (C+) | 2 | |
| Discounted Cash Flow | 3 | |
| Return on Equity | 2 | |
| Return on Assets | 2 | |
| Debt to Equity | 2 | |
| Price to Earnings | 1 | |
| Price to Book | 3 |
Historical Rating
Evaluation of past performances shows consistent scores, indicating stability in the company's financial health.
| Date | Overall | DCF | ROE | ROA | Debt to Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2026-01-23 | 2 | 3 | 2 | 2 | 2 | 1 | 3 |
| (Previous) | 0 | 3 | 2 | 2 | 2 | 1 | 3 |
Analyst Price Targets
Analysts present a mixed outlook with price targets over a broad range.
| High | Low | Median | Consensus |
|---|---|---|---|
| $56 | $29 | $45 | $43.36 |
Analyst Sentiment
Current analyst recommendations highlight a preference for holding the stock.
| Recommendation | Count | Visualization |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 15 | |
| Hold | 21 | |
| Sell | 4 | |
| Strong Sell | 0 |
Conclusion
Southwest Airlines Co. demonstrates solid potential, despite the economic volatility impacting the airline industry. The current fundamentals reflect a balanced score, suggesting cautious optimism. Analysts generally advise holding the stock, as indicated by the consensus rating. While historical ratings remained mostly consistent, the strategic growth and market expansion endeavors could unlock new opportunities. Investors should weigh potential risks such as fluctuating market conditions and regulatory changes.