Southwest Airlines Co (LUV) Stock Forecast Oct. 7, 2026
Analysis updated on Oct. 7, 2026 (UTC) · Total · absolute moveSwitch to Alpha · NYSE
Southwest Airlines Co (LUV) stock forecast summary
On Oct. 7, 2026, LUV is rated Neutral: its 90-day Total forecast sits in the middle 30% of the 5375 stocks scored that day.
Southwest Airlines Co is a large-cap company with a market capitalization of $20.77B. It ranks number 5 by market capitalization among the 12 Air Transportation, Scheduled issuers in our coverage with a current forecast.
A per-ticker accuracy statistic for LUV is published only once its sample size is known. Across our coverage, the out-of-sample test on 4537 stocks from 2025-01-06 to 2026-06-09 produced a positive net return in 73.7% of rebalance periods (factor-neutral book, net of estimated costs). Full backtest report
Expected absolute price move over the horizon, market included. This is the number a price target is built from. Ratings: strong buy ≥ +4.5%, buy ≥ +3.4%, sell < +2.2%, strong sell < +1.0% (top 15%, next 20%, middle 30%, next 20%, bottom 15% of the 2026-10-07 signals)
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How LUV ranks among 5375 stocks
90D Total forecasts of every company scored, cut into five relative ratings at the 15th, 35th, 65th and 85th percentiles (dashed lines).
Southwest Airlines Co (LUV) fundamentals
Trailing twelve months. The industry median and the rank (1 = highest) are taken over the Air Transportation, Scheduled peers listed below that report each metric.
Reported net income does not reconcile with earnings per share and the share count, so net-income-based ratios are withheld.
Valuation & Market
| Metric | LUV | Rank |
|---|---|---|
| Market Cap | $20.77B | 5/12 |
| P/B Ratio | 2.60x | 3/8 |
| Dividend Yield | 1.78% | – |
| EPS | $0.87 | – |
| Book Value/Share | $16.31 | – |
| Revenue/Share | $61.47 | – |
| FCF/Share | $-0.93 | – |
Profitability & Margins
| Metric | LUV | Rank |
|---|---|---|
| ROIC | 6.6% | 4/8 |
| Operating Margin | 3.5% | 5/8 |
| EBT Margin | 3.6% | 3/8 |
| Tax Rate | 21.5% | – |
Financial Health
| Metric | LUV | Rank |
|---|---|---|
| Current Ratio | 0.49x | 7/9 |
| D/E Ratio | 2.64x | 6/8 |
| Financial Leverage | 3.64x | 6/8 |
| Interest Coverage | 3.1x | 2/8 |
| Working Capital | -$6.79B | 7/9 |
Cash Flow
| Metric | LUV | Rank |
|---|---|---|
| Operating Cash Flow | $2.53B | 4/8 |
| Free Cash Flow | -$456M | 5/6 |
| Capital Spending | -$2.98B | 4/6 |
| OCF Growth YoY | 36.7% | 1/6 |
| FCF/Sales | -1.5% | 4/6 |
| CapEx/Sales | 9.9% | 4/6 |
Operational Efficiency
| Metric | LUV | Rank |
|---|---|---|
| Asset Turnover | 1.03x | 1/8 |
| Receivables Turnover | 385.5x | 1/7 |
| Fixed Assets Turnover | 1.5x | 4/8 |
| Days Sales Outstanding | 1 days | 7/7 |
Income Statement
| Metric | LUV | Rank |
|---|---|---|
| Total Revenue | $30.07B | 4/8 |
| Operating Income | $1.04B | 3/8 |
Dividend & Shareholder Information
| Metric | LUV | Rank |
|---|---|---|
| Dividends Per Share | $0.76 | – |
| Payout Ratio | 87.4% | – |
| Shares Outstanding | 489M | – |
Balance Sheet Highlights (USD millions)
| Total Current Assets | $6.48B | 22.3% of assets |
| Cash & Short-term Investments | $3.79B | 13.0% of assets |
| Accounts Receivable | $78M | 0.3% of assets |
| Total Liabilities | $21.08B | 72.5% of assets |
| Short-term Debt | $11.20B | 38.5% of assets |
LUV quarterly financials and insider trading
Southwest Airlines Co (LUV) industry peers
Companies classified under the same SEC industry code as Southwest Airlines Co (Air Transportation, Scheduled): 12 common-stock issuers with a forecast this week, one row per issuer, largest first. This is a classification match, not a curated list of competitors.
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Sign up free| Company | 90-Day AI Forecast (Total) | Market Cap |
|---|---|---|
| LUV Southwest Airlines Co | ▶ | $20.77B |
| LTM Latam Airlines Group S.A. | ▶ | $29.99T |
| RYAAY Ryanair Holdings Plc | ▶ | $58.32B |
| DAL Delta Air Lines, Inc. | ▲ | $55.02B |
| UAL United Airlines Holdings, Inc. | ▲ | $36.31B |
| AAL American Airlines Group Inc. | ▲ | $8.61B |
| CPA Copa Holdings, S.A. | ▶ | $5.69B |
| ALK Alaska Air Group, Inc. | ▲ | $4.45B |
| ALGT Allegiant Travel Co | ▲ | $2.12B |
| ULCC Frontier Group Holdings, Inc. | ▲ | $1.44B |
| RJET Republic Airways Holdings Inc. | ▶ | $824M |
| FJET Starfighters Space, Inc. | ▲ | $90M |
Where LUV sits on the market map
Southwest Airlines Co (LUV) stock news
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Southwest Airlines Co (LUV) stock forecast FAQ
What is the Southwest Airlines Co (LUV) stock forecast?
On Oct. 7, 2026, LUV is rated Neutral: its 90-day Total forecast sits in the middle 30% of the 5375 stocks scored that day.
How accurate are Southwest Airlines Co stock predictions?
A per-ticker accuracy statistic for LUV is published only once its sample size is known. Across our coverage, the out-of-sample test on 4537 stocks from 2025-01-06 to 2026-06-09 produced a positive net return in 73.7% of rebalance periods (factor-neutral book, net of estimated costs). Full backtest report
How often are Southwest Airlines Co forecasts updated?
Southwest Airlines Co forecasts are refreshed on trading days as the daily model run completes. The forecast on this page was produced on Oct. 7, 2026.
Which companies are Southwest Airlines Co's industry peers?
12 issuers in our coverage, LUV included, share the SEC industry code Air Transportation, Scheduled. The largest are: Latam Airlines Group S.A. (LTM), Ryanair Holdings Plc (RYAAY), Delta Air Lines, Inc. (DAL), United Airlines Holdings, Inc. (UAL), American Airlines Group Inc. (AAL), Copa Holdings, S.A. (CPA).
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.