Are Wall Street Analysts Bullish on Southwest Airlines Stock?
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Southwest Airlines Co. (LUV) is a major U.S. airline headquartered at Dallas Love Field in Texas. With a market capitalization of $17 billion, Southwest Airlines provides a range of services beyond air travel, including inflight entertainment, the Rapid Rewards loyalty program, digital tools like SWABIZ for business travelers, and add-ons such as EarlyBird Check-In, upgraded boarding, and transportation options for pets and unaccompanied minors.
LUV shares have outpaced the broader market over the past year. LUV has gained 13% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 12.3%. However, in 2025, LUV’s stock declined 11.2%, compared to the SPX’s 3.3% dip on a YTD basis.
Narrowing the focus, LUV has also surpassed the U.S. Global Jets ETF’s (JETS) 2.1% rise over the past year and 17.6% fall in 2025.
On May 2, Southwest Airlines shares climbed more than 4%, driven by a broad rally in travel-related stocks following stronger-than-expected U.S. April nonfarm payroll data. The upbeat jobs report signaled continued economic strength and consumer resilience, which in turn boosted investor confidence in the travel and leisure sector.
For fiscal 2025, ending in December, analysts expect LUV’s EPS to grow 25% to $1.20 on a diluted basis. The company’s earnings surprise history is solid. It beat the consensus estimate in all of the last four quarters.
Among the 21 analysts covering LUV stock, the consensus is a “Hold.” That’s based on five “Strong Buy” ratings, one “Moderate Buy,” eight “Holds,” two “Moderate Sell,” and five “Strong Sells.”
This configuration is more bearish than three months ago, with four analysts suggesting a “Strong Sell.”
On Apr. 29, Raymond James Financial, Inc. (RJF) lowered its price target on Southwest Airlines from $42 to $40, citing weakness in the domestic main cabin segment. The brokerage maintains its "outperform" rating but views Q2 2025 as the riskiest due to delays in key initiatives.
While LUV is currently trading above the mean price target of $28.16, its Street-high price target of $40 suggests an upside potential of 34%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.