Southwest Airlines (NYSE:LUV) Upgraded at Zacks Research

Zacks Research upgraded shares of Southwest Airlines (NYSE:LUV) from a strong sell rating to a hold rating in a report published on Wednesday morning,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.

Other equities research analysts also recently issued reports about the stock. BMO Capital Markets cut their price objective on shares of Southwest Airlines from $60.00 to $50.00 and set an “outperform” rating for the company in a research report on Monday, September 28th. JPMorgan Chase & Co. decreased their price objective on shares of Southwest Airlines from $59.00 to $58.00 and set an “overweight” rating for the company in a report on Friday, October 23rd. Rothschild & Co Redburn raised Southwest Airlines from a “sell” rating to a “neutral” rating and raised their price objective for the company from $35.00 to $40.00 in a research report on Friday, September 18th. Citigroup decreased their price target on shares of Southwest Airlines from $55.00 to $50.00 and set a “neutral” rating for the company in a research report on Friday, July 24th. Finally, Raymond James Financial dropped their price objective on Southwest Airlines from $60.00 to $54.00 and set an “outperform” rating for the company in a report on Monday, August 24th. Eleven research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $48.20.

Southwest Airlines Stock Performance

NYSE:LUV opened at $44.46 on Wednesday. The company’s 50-day moving average is $41.16 and its two-hundred day moving average is $43.54. The company has a debt-to-equity ratio of 0.51, a current ratio of 0.47 and a quick ratio of 0.40. Southwest Airlines has a 1-year low of $30.84 and a 1-year high of $55.11. The firm has a market capitalization of $21.77 billion, a price-to-earnings ratio of 21.37, a PEG ratio of 0.64 and a beta of 1.23.

Southwest Airlines (NYSE:LUV) last issued its quarterly 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 during the quarter, compared to the consensus estimate of $8.25 billion. During the same period in the previous year, the firm posted $0.11 EPS. Southwest Airlines’s revenue was up 21.2% on a year-over-year basis. Analysts forecast that Southwest Airlines will post 2.78 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of LUV. Primecap Management Co. CA purchased a new position in Southwest Airlines in the second quarter valued at about $2,509,179,000. BlackRock Inc. bought a new position in shares of Southwest Airlines in the second quarter worth $1,538,382,000. Dimensional Fund Advisors LP grew its holdings in Southwest Airlines by 2.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,763,154 shares of the airline’s stock worth $216,472,000 after acquiring an additional 117,833 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in Southwest Airlines in the 2nd quarter worth about $234,872,000. Finally, U S Global Investors Inc. increased its stake in Southwest Airlines by 13.9% in the 3rd quarter. U S Global Investors Inc. now owns 2,260,841 shares of the airline’s stock worth $94,141,000 after acquiring an additional 275,204 shares during the last quarter. Hedge funds and other institutional investors own 80.82% of the company’s stock.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: Southwest’s third-quarter revenue rose 21.2%, supported by stronger fares and record unit revenue. The company also reported improving profitability and cash flow, though higher fuel costs limited margin momentum. Southwest Q3 Revenue Surges While Fuel Costs Test Margin Momentum
• Positive Sentiment: Zacks Research upgraded its rating on LUV from “strong sell” to “hold,” a modest improvement in analyst sentiment. Zacks Research rating update
• Neutral Sentiment: Falling oil prices may provide some relief to airline fuel expenses, but the cited article discusses travel stocks broadly rather than a specific Southwest catalyst. 3 Consumer And Travel Stocks To Watch As Oil Falls And The Dollar Softens
• Negative Sentiment: Fuel-cost pressure, execution risks and valuation concerns temper the growth story. Zacks Research also cut several earnings estimates, including FY2026 and FY2027, despite raising some quarterly projections—suggesting uncertainty about how consistently revenue growth will translate into profits. Is LUV Stock Worth Buying as Growth Outruns Execution Risks?

About Southwest Airlines

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.