Southwest Airlines (LUV)
NYSEIndustrialsAirlines, Airports & Air ServicesSnapshot 2026-10-29
$43.68+0.48%
Close 2026-10-29 · 1-day change
NYSEIndustrialsAirlines, Airports & Air ServicesSnapshot 2026-10-29
Research Workspace
Put LUV beside peers and holdings, graph the same metric, and keep your notes with the evidence.
Daily closes. Earnings/event dots are placed inline.
Industries move in repeating boom-and-bust cycles. This shows where this stock’s industry sits in that cycle, stage by stage (recovery → expansion → supercycle → steady → deceleration → contraction), from its fundamentals (orders, revenue, capital spending), not the stock’s price.
A booming industry is a tailwind for the names in it; a contracting one is a headwind. Companies in the same industry tend to rise and fall together with the cycle, the way a tide lifts and lowers every boat in the harbor at once, so a large part of a stock’s swing can come from where its industry sits rather than from the company itself. It’s context for reading the company’s results, not a buy/sell call. Full explanation →
Industrials is in expansion. Describes the industry's cycle state, not a call on this stock.
The stage band shows the industry’s cycle over the chart’s timeline (each color a stage); a ▼ marks a quarter its growth inflected down — amber is an unconfirmed watch, red is confirmed the next quarter. Use “Overlay cycle on chart” to tint the price chart by stage. The industry’s fundamentals, not a signal on this stock.
Primary pillar under pressure — Total revenue growth of at least 10% year over year: Revenue growth: 21.2%.
View ThesisRevenue growth is accelerating — up about 15% over the past year.
View GrowthMiddle-of-the-pack quality for its industry.
View QualityManagement screens strong on capital allocation, margins.
View ManagementExpectations look reasonable — what the market is pricing in sits in line with or below what analysts forecast.
View ValuationModerate volatility — typically moves about 1% a day.
View RiskLUV’s transformation depends on stronger fares and customer offerings sustaining revenue growth despite sector pressure. Third-quarter revenue grew 21.2% year over year, accelerating from 16.4% in Q2. Third-quarter adjusted earnings beat consensus. LUV trades at 16.5 times P/E versus the 22.3-times peer median. Expectations look modest versus our growth view. Fuel costs threaten gains, and our model puts next-quarter miss probability near 27%. Revenue growth of 21.2% remains below the thesis’s 10% minimum? Peer multiples imply a price about 24% above where it trades (it looks cheap on this basis); the thesis is on watch. This read is provisional
Trailing returns as of 2026-10-29. LUV is total return (includes dividends); the S&P 500 benchmark is price return (the index excludes dividends).
Based on 25 analysts currently covering LUV (as of Oct 2026).
Based on 9 Wall Street analysts offering 12-month price targets for LUV in the last 4 months.
Continue this research
Compare LUV with peers and holdings, graph the same reported metric, keep your questions beside the evidence, and return when the facts change.
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| Compare | Company | Living FV | P/E | Revenue % | Quality |
|---|---|---|---|---|---|
| LUV Selected company | Graph | Compare | Trend | Review | |
| Peer Add a competitor | Graph | Compare | Trend | Review | |
| Holding Compare a holding | Graph | Compare | Trend | Review |
Selected metric trend
Quarterly · checked companies · value or % of revenue
A consensus fair price across 9 valuation methods, at three horizons. As of 2026-10-29. Estimates are diagnostics, not price targets. Short-horizon estimates are close to coin-flips, so confidence is a method-agreement read, not a prediction.
Today's peer multiple on trailing earnings, with no growth credited. This is the headline read.
Adds projected growth, so it leans optimistic by design. Read it as upside context, not a base case.
A price-focused, side-by-side fair-value read versus Passenger Airlines — fair value, gap to price, and forward P/E.
Compare the value case
Put LUV next to peers and holdings, compare Living FV and multiples, then graph the driver behind the difference.
Advances: Deliver customer product and loyalty enhancements
A new elite tier and perk incrementally enhance loyalty, but the headline signals no major thesis change.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
End-of-day figures as of 2026-10-29. EPS is implied from price ÷ P/E. Not investment advice.
Current $43.68
The last 12 months of price, then the range of analyst 12-month targets from today’s $43.68.
Analyst ratings and price targets are third-party Wall Street estimates, not QuarterlyIQ’s view. Not investment advice.
A long-thesis check that carries the widest uncertainty of the three horizons.
Above average on quality vs scored peers
Direction of the business behind the multiple. Bands are backend reads; trailing-12-month basis.
Threatens: Deliver customer product and loyalty enhancements
Reported rewards devaluation may weaken loyalty value and customer appeal.
Lower profit expectations from fuel costs challenge the turnaround's earnings outlook, though do not alone invalidate it.
Threatens: Maintain cost discipline and achieve multi-year cost reduction targets
Higher fuel costs prompt a lower 2026 profit forecast, weakening expected financial progress.
Advances: Enhance customer product offerings including assigned and extra legroom seating
Enhances customer offerings, aligning with management's objectives.
Threatens: Enhance customer product offerings including assigned and extra legroom seating
IT issues hinder customer experience and product offerings.
Changes to Companion Pass may reduce customer loyalty.
Threatens: Optimize network and capacity for higher returns
Exiting markets may hinder network optimization efforts.
