Southwest Airlines Company (LUV) Stock Analysis
Range Bound setup
Industrials · Airlines
Sell if holding. Engine safety override at $39.08: Quality below floor (2.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10. Specifically: Below-average business quality.
Southwest Airlines operates U.S. scheduled passenger service across 42 states and 10 near-international countries using an all-Boeing 737 fleet of 803 aircraft. Revenue comes from passenger fares (with new assigned seating and bag fees from January 2026) and ancillary services.
Sell if holding. Engine safety override at $39.08: Quality below floor (2.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10. Specifically: Below-average business quality. Chart setup: RSI 49 mid-range, Bollinger mid-band. Score 5.2/10, moderate confidence.
Passes 5/8 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 82d clear, semi cycle peak clear). Fails on favorable risk/reward ratio and news legal. Suitability: moderate.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHSupplierBoeing10-K Item 1A: 'The Company is currently dependent on Boeing as the sole manufacturer of the Company's aircraft.'
Material Events(8-K, last 90d)
- 2026-02-10Item 5.02LOWDirectors C. David Cush and Gregg A. Saretsky each submitted resignations from the Board effective February 23, 2026. Neither departure due to any disagreement with the Company.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
1 floor-breaker
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $39.08: Quality below floor (2.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10. Specifically: Below-average business quality. Chart setup: RSI 49 mid-range, Bollinger mid-band. Prior stop was $36.34. Score 5.2/10, moderate confidence.
Take-profit target: $40.73 (+4.2% upside). Prior stop was $36.34. Stop-loss: $36.34.
Concentration risk — Supplier: Boeing; Quality below floor (2.3 < 4.0).
Southwest Airlines Company trades at a P/E of 25.3 (forward 8.3). TrendMatrix value score: 7.7/10. Verdict: Sell.
30 analysts cover LUV with a consensus score of 3.4/5. Average price target: $45.
What does Southwest Airlines Company do?Southwest Airlines operates U.S. scheduled passenger service across 42 states and 10 near-international countries using...
Southwest Airlines operates U.S. scheduled passenger service across 42 states and 10 near-international countries using an all-Boeing 737 fleet of 803 aircraft. Revenue comes from passenger fares (with new assigned seating and bag fees from January 2026) and ancillary services.