March 02, 2026 a 07:43 pm
LUV: Fundamental Ratio Analysis - Southwest Airlines Co.
The Southwest Airlines Co. stock (Ticker: LUV) provides a substantial insight into the airline industry, greatly influenced by fluctuating market conditions and domestic travel demands. With its expansive fleet and diverse destination access, the company is strategically positioned in the competitive airlines market. However, the stock's performance is tempered by industry challenges and operational costs.
Fundamental Rating
Southwest Airlines currently holds a fundamental rating of 'C' with an overall score of 2. Individual scores vary across key financial metrics, reflecting moderate performance across aspects such as equity returns and cash flow.
| Category | Score | Visualization |
|---|---|---|
| Discounted Cash Flow | 1 | |
| Return on Equity | 2 | |
| Return on Assets | 2 | |
| Debt to Equity | 2 | |
| Price to Earnings | 1 | |
| Price to Book | 2 |
Historical Rating
The comparison of historical scores with current data shows a stable trajectory in fundamental performance, with no significant changes observed over the given period.
| Date | Overall | DCF | ROE | ROA | Debt/Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2026-03-02 | 2 | 1 | 2 | 2 | 2 | 1 | 2 |
| Previous Data | 0 | 1 | 2 | 2 | 2 | 1 | 2 |
Analyst Price Targets
Analyst forecasts suggest a price range varying from $32 to $73, with the median target at $50. The consensus aligns closely to this with a target of $51.27.
| High | Low | Median | Consensus |
|---|---|---|---|
| $73 | $32 | $50 | $51.27 |
Analyst Sentiment
Analyst sentiment indicates a majority 'Hold' stance, with a strong inclination towards maintaining current positions amidst minimal buying momentum.
| Recommendation | Count | Visualization |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 18 | |
| Hold | 20 | |
| Sell | 4 | |
| Strong Sell | 0 |
Conclusion
Southwest Airlines Co. presents a stable investment opportunity, primarily held at 'Hold' by analysts. With recognizable industry strengths and strategic market placement, the concerns focus on external economic and industry-specific pressures. The forecasted price range suggests limited short-term growth, yet potential remains for those seeking positional stability within a volatile market. Careful monitoring of operational scalability and expense management will be crucial for future performance.