Southwest Airlines (NYSE:LUV) Stock Lifted to “Hold” by Zacks Research

Zacks Research upgraded shares of Southwest Airlines (NYSE:LUV) from a strong sell rating to a hold rating in a report published on Wednesday morning,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.

Several other research firms have also recently weighed in on LUV. Citigroup lowered their price target on shares of Southwest Airlines from $55.00 to $50.00 and set a “neutral” rating on the stock in a report on Friday, July 24th. UBS Group boosted their price objective on Southwest Airlines from $52.00 to $54.00 and gave the stock a “buy” rating in a report on Friday, October 23rd. Wall Street Zen downgraded Southwest Airlines from a “buy” rating to a “hold” rating in a research report on Saturday, September 5th. Rothschild & Co Redburn upgraded Southwest Airlines from a “sell” rating to a “neutral” rating and increased their target price for the stock from $35.00 to $40.00 in a research note on Friday, September 18th. Finally, Raymond James Financial lowered their target price on Southwest Airlines from $60.00 to $54.00 and set an “outperform” rating on the stock in a research note on Monday, August 24th. Eleven equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $48.20.

Southwest Airlines Price Performance

NYSE:LUV opened at $44.39 on Wednesday. Southwest Airlines has a one year low of $30.84 and a one year high of $55.11. The company has a market cap of $21.73 billion, a P/E ratio of 21.34, a P/E/G ratio of 0.67 and a beta of 1.23. The firm’s fifty day moving average price is $41.07 and its two-hundred day moving average price is $43.52. The company has a debt-to-equity ratio of 0.51, a current ratio of 0.47 and a quick ratio of 0.40.

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

Hedge Funds Weigh In On Southwest Airlines

A number of hedge funds have recently bought and sold shares of LUV. Scarborough Advisors LLC bought a new position in shares of Southwest Airlines in the first quarter worth about $28,000. Fiduciary Financial Advisors acquired a new stake in shares of Southwest Airlines in the 2nd quarter valued at approximately $32,000. Archer Investment Corp acquired a new stake in shares of Southwest Airlines in the 2nd quarter valued at approximately $32,000. Grove Bank & Trust grew its holdings in shares of Southwest Airlines by 109.4% during the 2nd quarter. Grove Bank & Trust now owns 871 shares of the airline’s stock valued at $45,000 after purchasing an additional 455 shares during the last quarter. Finally, MidFirst Bank bought a new stake in shares of Southwest Airlines during the 2nd quarter valued at approximately $48,000. 80.82% of the stock is owned by institutional investors.

Trending Headlines about Southwest Airlines

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.