Is Southwest Airlines Stock Attractive After Its Earnings Rebound?
LUV's earnings rebound, stronger unit revenue and $5.3 billion liquidity support upside, but fuel, Boeing and valuation risks remain.
Zacks Investment Research7/29/2026Positive
LUV
Southwest Airlines CompanyNYSEINDUSTRIALSAIRLINES
Key Statistics
Market Cap
$22.66B
P/E Ratio
28.94
EPS
$1.60
Beta
1.12
52W High
$54.63
52W Low
$28.44
50-Day MA
$45.83
200-Day MA
$41.57
Dividend Yield
1.59%
Profit Margin
2.78%
Forward P/E
15.08
PEG Ratio
0.36
About Southwest Airlines Company
Southwest Airlines Co., typically referred to as Southwest, is one of the major airlines of the United States and the world's largest low-cost carrier airline. It is headquartered in Dallas, Texas.
Fundamentals
| Revenue (TTM) | $30.07B |
| Gross Profit (TTM) | $6.74B |
| EBITDA | $2.34B |
| Operating Margin | 3.38% |
| Return on Equity | 11.10% |
| Return on Assets | 2.32% |
| Revenue/Share (TTM) | $59.37 |
| Book Value | $14.48 |
| Price-to-Book | 3.13 |
| Price-to-Sales (TTM) | 0.75 |
| EV/Revenue | 0.841 |
| EV/EBITDA | 9.11 |
| Quarterly Earnings Growth (YoY) | 20.50% |
| Quarterly Revenue Growth (YoY) | 16.40% |
| Shares Outstanding | $489.21M |
| Float | $484.13M |
| % Insiders | 1.00% |
| % Institutions | 89.73% |
Historical Volatility
HV 10-Day
44.50%
HV 20-Day
33.83%
HV 30-Day
33.83%
HV 60-Day
39.92%
HV Rank
21.4%
Volatility is currently expanding
Analyst Ratings
Consensus ($51.79 target)
4
Strong Buy7
Buy9
Hold2
Sell3
Strong SellLatest News
Should Value Investors Buy Southwest Airlines (LUV) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Zacks Investment Research7/29/2026Positive
Southwest (LUV) is an Incredible Growth Stock: 3 Reasons Why
Southwest (LUV) could produce exceptional returns because of its solid growth attributes.
Zacks Investment Research7/28/2026Positive
Fuel swings turn US airline earnings forecasts into moving targets
A rapid rise in jet fuel prices is forcing U.S. airlines to rewrite earnings expectations, exposing how quickly higher fuel costs can outpace revenue gains from strong travel demand.
Reuters7/24/2026Negative
Southwest Airlines Co. (LUV) Q2 2026 Earnings Call Transcript
Southwest Airlines Co. (LUV) Q2 2026 Earnings Call Transcript
Seeking Alpha7/23/2026Neutral
Southwest Airlines Q2 Earnings Call Highlights
Southwest Airlines NYSE: LUV reported sharply higher second-quarter 2026 earnings and record revenue, with executives saying the carrier's recent commercial transformation contributed across the full quarter for the first time.
MarketBeat7/23/2026Neutral
Southwest Airlines put Texas jet fuel on a boat to LA for the first time amid supply worries
Southwest Airlines sent a barge with 12.6 million gallons of jet fuel through the Panama Canal to Los Angeles this spring in case of fuel shortages. This year's jump in fuel costs has eaten into airline earnings.
CNBC7/23/2026Negative
Southwest Airlines Q2 Earnings Beat Estimates on Record Revenue Growth
LUV's Q2 earnings surge as record revenues, higher fares and commercial gains outweigh an $889 million fuel-cost increase.
Zacks Investment Research7/23/2026Positive
Southwest (LUV) Upgraded to Buy: What Does It Mean for the Stock?
Southwest (LUV) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Zacks Investment Research7/23/2026Positive
Jobless Claims Come in Decades Low
Jobless Claims Come in Decades Low.
Zacks Investment Research7/23/2026Positive
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Data last updated: 7/29/2026