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

Southwest Airlines (NYSE:LUV) was upgraded by investment analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research note issued 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.

Other equities research analysts have also issued reports about the stock. 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 report on Thursday, October 29th. BMO Capital Markets reduced their target price on shares of Southwest Airlines from $60.00 to $50.00 and set an “outperform” rating on the stock in a report on Monday, September 28th. Barclays decreased their target price on shares of Southwest Airlines from $65.00 to $58.00 and set an “overweight” rating on the stock in a research report on Friday, September 11th. Susquehanna lowered their price target on shares of Southwest Airlines from $50.00 to $45.00 and set a “neutral” rating for the company in a research note on Wednesday, October 7th. Finally, Raymond James Financial lowered their price target on shares of Southwest Airlines from $60.00 to $54.00 and set an “outperform” rating for the company in a research note on Monday, August 24th. Eleven research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $48.20.

Southwest Airlines Stock Down 4.4%

Shares of NYSE:LUV opened at $44.39 on Wednesday. Southwest Airlines has a 52-week low of $30.84 and a 52-week high of $55.11. The firm has a fifty day moving average of $41.07 and a 200 day moving average of $43.52. The firm has a market capitalization of $21.73 billion, a PE ratio of 21.34, a price-to-earnings-growth ratio of 0.67 and a beta of 1.23. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.40 and a current ratio of 0.47.

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Primecap Management Co. CA purchased a new stake in shares of Southwest Airlines in the 2nd quarter worth about $2,509,179,000. BlackRock Inc. bought a new position in shares of Southwest Airlines in the 2nd quarter worth about $1,538,382,000. Bank of New York Mellon Corp bought a new position in shares of Southwest Airlines in the 2nd quarter worth about $234,872,000. Hsbc Holdings PLC bought a new position in shares of Southwest Airlines in the 2nd quarter worth about $46,295,000. Finally, Legal & General Group Plc purchased a new position in Southwest Airlines during the 2nd quarter valued at about $38,069,000. Hedge funds and other institutional investors own 80.82% of the company’s stock.

More Southwest Airlines News

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

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.