Southwest (LUV, $35.26) gets rating boost, price target hike from Goldman Sachs analyst
Southwest Airlines got a rating upgrade from a Goldman Sachs analyst.
On Monday, Goldman analyst Catherine O'Brien raised her rating on the air carrier to buy from sell. O'Brien also boosted her share price target to $47 from $35. According to the analyst, Southwest shares have been historically less volatile compared to the industry.
"We now expect traffic for the carriers in our coverage universe to recover to 2019 levels in 2023 as opposed to 2022," she said. "However, while we are taking the view that demand recovery will be slower than we were previously expecting, we continue to believe that demand for air travel will return to pre-Covid-19 levels and ultimately continue to grow from there."
According to Tickeron, LUV enters a Downtrend because Momentum Indicator dropped below the 0 level on June 26, 2020
This indicator signals that LUV's price has further to drop, since it moved below its price 14 days ago. Traders may consider selling the ticker, shorting the ticker, or exploring put options. In 43 of 72 cases where LUV's Momentum Indicator fell below the 0 level, its price fell further within the subsequent month. The odds of a continued Downtrend are 60%.
Current price $35.26 crossed the support line at $34.13 and is trading between $36.22 resistance and $34.13 support lines. Throughout the month of 05/27/20 - 06/26/20, the price experienced a -5% Downtrend. During the week of 06/19/20 - 06/26/20, the stock fell -7%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 24 of 46 cases where LUV's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 52%.
The Moving Average Convergence Divergence (MACD) crossed below the signal line. In 18 of 35 cases where LUV's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 51%.
Bullish Trend Analysis
The Stochastic Indicator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
The 10-day Moving Average for this ticker crossed above its 50-day Moving Average on June 02, 2020, which can be construed as a buy signal, indicating that the trend is shifting higher. In 8 of 12 similar cases where LUV's 10-day Moving Average crossed above its 50-day Moving Average, the price rose further within the following month. The odds of a continued Uptrend are 67%.
The Aroon Indicator entered an Uptrend today. In 170 of 271 similar cases where LUV Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 63%.
Fundamental Analysis (Ratings)
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 64%. During the last month, the daily ratio of advancing to declining volumes was 1.03 to 1.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LUV’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is 72 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating fairly steady price growth. LUV’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 57 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.79) is normal, around the industry mean (1.93). P/E Ratio (9.42) is within average values for comparable stocks, (9.79). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (1.63). Dividend Yield (1.30) settles around the average of (0.98) among similar stocks. LUV's P/S Ratio (0.85) is slightly higher than the industry average of (0.49).
The Tickeron SMR rating for this company is 50 (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
Aroon Indicator for LUV shows an upward move is likely
LUV's Aroon Indicator triggered a bullish signal on June 12, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 190 similar instances where the Aroon Indicator showed a similar pattern. In of the 190 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The 10-day moving average for LUV crossed bullishly above the 50-day moving average on May 12, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LUV advanced for three days, in of 296 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for LUV moved out of overbought territory on June 11, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on June 12, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on LUV as a result. In of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for LUV turned negative on June 12, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LUV declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
LUV broke above its upper Bollinger Band on May 29, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LUV’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.931) is normal, around the industry mean (2.761). P/E Ratio (35.652) is within average values for comparable stocks, (23.900). Projected Growth (PEG Ratio) (0.538) is also within normal values, averaging (2.381). Dividend Yield (0.023) settles around the average of (0.032) among similar stocks. P/S Ratio (0.736) is also within normal values, averaging (0.618).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LUV’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a provider of scheduled air transportation services
Industry Airlines
Advertisement