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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
LUV's RSI Indicator recovers from oversold territory
The RSI Indicator for LUV moved out of oversold territory on September 03, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 32 similar instances when the indicator left oversold territory. In 25 of the 32 cases the stock moved higher. This puts the odds of a move higher at 78%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 14, 2026. You may want to consider a long position or call options on LUV as a result. In 62 of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 72%.
The Moving Average Convergence Divergence (MACD) for LUV just turned positive on September 09, 2026. Looking at past instances where LUV's MACD turned positive, the stock continued to rise in 36 of 52 cases over the following month. The odds of a continued upward trend are 69%.
LUV moved above its 50-day moving average on October 06, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +1.99% 3-day Advance, the price is estimated to grow further. Considering data from situations where LUV advanced for three days, in 218 of 307 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
The Aroon Indicator entered an Uptrend today. In 146 of 207 cases where LUV Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 71%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 37 of 57 cases where LUV's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 65%.
The 50-day moving average for LUV moved below the 200-day moving average on September 23, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 76%.
LUV broke above its upper Bollinger Band on September 17, 2026. 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.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 20 (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (2.921) is normal, around the industry mean (3.112). P/E Ratio (26.425) is within average values for comparable stocks, (23.433). Projected Growth (PEG Ratio) (0.200) is also within normal values, averaging (2.252). Dividend Yield (0.017) settles around the average of (0.010) among similar stocks. P/S Ratio (0.683) is also within normal values, averaging (0.529).
The Tickeron Price Growth Rating for this company is 46 (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 Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 66 (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.
The Tickeron PE Growth Rating for this company is 90 (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 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 73, placing this stock worse than average.
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General Information
a provider of scheduled air transportation services
Industry Airlines
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