Southwest Airlines Company (LUV) Stock Analysis
Range Bound setup
Industrials · Airlines
Sell if holding. Engine safety override at $41.28: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10. Specifically: Elevated put/call ratio: 2.59; Below-average business quality.
Southwest Airlines operates a domestic and near-international passenger airline serving 117 destinations across 42 U.S. states and 10 near-international countries with a fleet of 803 Boeing 737 aircraft as of December 31, 2025. Fuel and oil was the second-largest cost at... Read more
Sell if holding. Engine safety override at $41.28: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10. Specifically: Elevated put/call ratio: 2.59; Below-average business quality. Chart setup: RSI 57 mid-range, Bollinger mid-band. Score 5.1/10, moderate confidence.
Passes 5/7 gates (positive momentum, clean insider activity, earnings proximity 42d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated 2026-06-10Recent Developments — Southwest Airlines Company
Latest news
- NEWS Airlines Brace For Worst Profit Squeeze Since COVID — benzinga Jun 10, 2026 negative
- NEWS Southwest Airlines Begins Interline Partnership With Singapore Airlines, Increasing Flight Connectivity Across Southwest — benzinga Jun 8, 2026 positive
- NEWS U.S. DOT Says U.S. Airlines Fuel Costs Rose By 78% In April To Nearly $6.5 Billion — benzinga Jun 8, 2026 negative
- NEWS Delta, United, Southwest Stocks In Focus As Airline Group Signals Sharp Drop In Profits — benzinga Jun 7, 2026 negative
- NEWS Morgan Stanley Maintains Overweight on Southwest Airlines, Raises Price Target to $60 — benzinga Jun 1, 2026 positive
Generated 2026-06-15T18:11:46Z.
Upcoming dated catalysts
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'
- HIGHSuppliersingle engine supplier10-K Item 1A: 'The Company is currently dependent on a single engine supplier, as well as single suppliers of certain other aircraft parts and equipment'
Material Events(8-K, last 90d)
- 2026-02-10Item 5.02LOWC. David Cush and Gregg A. Saretsky each submitted Board resignations effective February 23, 2026. Neither departure was due to disagreement with Company operations, policies or practices. No successors named.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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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 $41.28: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10. Specifically: Elevated put/call ratio: 2.59; Below-average business quality. Chart setup: RSI 57 mid-range, Bollinger mid-band. Prior stop was $38.38. Score 5.1/10, moderate confidence.
Take-profit target: $43.55 (+5.5% upside). Prior stop was $38.38. Stop-loss: $38.38.
Concentration risk — Supplier: Boeing; Concentration risk — Supplier: single engine supplier; Target reached (-0.5% upside).
Southwest Airlines Company trades at a P/E of 28.8 (forward 9.5). TrendMatrix value score: 7.3/10. Verdict: Sell.
30 analysts cover LUV with a consensus score of 3.4/5. Average price target: $46.
What does Southwest Airlines Company do?Southwest Airlines operates a domestic and near-international passenger airline serving 117 destinations across 42 U.S....
Southwest Airlines operates a domestic and near-international passenger airline serving 117 destinations across 42 U.S. states and 10 near-international countries with a fleet of 803 Boeing 737 aircraft as of December 31, 2025. Fuel and oil was the second-largest cost at approximately 19% of operating expenses in 2025; the company terminated its fuel hedging portfolio in Q2 2025 and introduced assigned seating and bag fees beginning January 2026.