Dallas, Texas-based Southwest Airlines Co. (LUV) is a leading passanger airlines company valued at a market cap of $20.5 billion. It offers reliable and affordable air travel across a broad network of domestic and international destinations while maintaining a strong focus on operational efficiency and customer satisfaction.
Companies valued at $10 billion or more are typically considered "large-cap stocks," and Southwest Airlines fits perfectly into this category. Southwest Airlines is a key player in the aviation industry, establishing itself as a leader by providing affordable, efficient air travel while prioritizing exceptional customer service and operational reliability.
Shares of LUV are trading 5.3% below their 52-week high of $36.12, which they hit on Dec. 5. The stock has gained 14.2% over the past three months, surpassing the Themes Airlines ETF’s (AIRL) 12.3% gain over the same time frame.
LUV has risen 20.2% in the past six months and increased 17.3% over the last 52 weeks. In contrast, AIRL has grown by 24.4% in the past year and 15.3% over the same period.
However, LUV has been trading above its 50-day and 200-day moving averages since late August, which indicates a bullish trend.
Southwest Airlines' stock declined 5.6% after the company reported Q3 earnings on Oct. 24. Its adjusted earnings of 15 cents beat the Street expectations, and revenue of $6.9 billion also exceeded estimates.
LUV has lagged behind its rival, JetBlue Airways Corporation (JBLU), which has gained 36.5% over the past 52 weeks.
Given LUV’s recent underperformance relative to its industry peers, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from 21 analysts in coverage. It currently trades above its mean price target of $32.23.
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. More news from Barchart- Is Rumble Stock a Buy, Sell, or Hold After a $775 Million Investment?
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