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LUV vs SKYW
Which Stock Would AI Choose? Southwest Airlines (LUV) vs. SkyWest (SKYW) Stock Comparison
Key Takeaways
- Southwest Airlines (LUV) boasts a larger market capitalization of approximately $20.5 billion, reflecting its position as a major low-cost carrier, while SkyWest (SKYW) maintains a smaller $3.9 billion cap as a regional operator.
- LUV trades at a high price-to-earnings (P/E) ratio of around 53, indicating premium valuation, compared to SKYW's attractive P/E of about 9, suggesting better value.
- Both stocks have shown modest gains in recent market activity, with LUV up roughly 5% over the past month and SKYW up around 4.5%, amid easing oil prices boosting airline sentiment.
- Year-to-date (YTD), SKYW edges out with about 3.8% gains versus LUV's 1.6%, though LUV has stronger one-year performance at nearly 69%.
- Upcoming quarterly earnings for both—LUV on April 22 and SKYW on April 23—could drive near-term volatility in the competitive airline sector.
- SKYW demonstrates superior profitability with earnings per share (EPS) of $10.35 and return on equity (ROE) of 16.6%, contrasting LUV's EPS of $0.79.
Introduction
Southwest Airlines (LUV) and SkyWest (SKYW) operate within the U.S. passenger airline industry, where major carriers and regional partners navigate fuel costs, capacity constraints, and shifting travel demand. This stock comparison highlights their relative performance, valuations, and market positioning amid recent sector tailwinds like easing oil prices and operational updates. Traders seeking short-term momentum from earnings catalysts or investors eyeing value in aviation may find insights here, particularly as both await first-quarter results. The analysis draws on verifiable metrics to aid informed decision-making in a volatile market.
LUV Overview and Recent Performance
Southwest Airlines (LUV), a leading low-cost carrier, serves millions of passengers with its point-to-point network and no-frills model emphasizing quick turnarounds. In recent weeks, LUV shares have climbed around 5%, supported by broader airline sector gains from declining oil prices and positive analyst commentary on its turnaround potential. The stock trades near $42, within a 52-week range of $24 to $55, reflecting recovery from prior lows. Key influences include leadership appointments in digital and loyalty programs to boost ancillary revenues, alongside expectations for Q1 revenue growth to $7.22 billion. Sentiment has improved with easing fuel pressures, though high P/E ratios signal caution on valuation ahead of earnings.
SKYW Overview and Recent Performance
SkyWest (SKYW), a prominent regional airline, operates flights under contracts with major carriers like Delta and United, focusing on efficient regional jets. Recent market activity saw SKYW shares rise about 4.5% in the past month, trading around $96 in a 52-week range of $82 to $124. Performance has been buoyed by sector-wide oil relief and recognition as a value play, despite some short-term slides. Strong fundamentals shine through with robust EPS and fleet stability, positioning it for potential outperformance. Investor sentiment reflects optimism on profitability amid regional demand, with upcoming earnings anticipated to showcase resilience in contract-based operations.
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Head-to-Head Comparison
LUV and SKYW differ starkly in scale and model: LUV drives direct consumer traffic as a major carrier, exposing it to broad demand swings, while SKYW benefits from stable contracts with majors, reducing marketing risks but tying growth to partner expansions. Valuation contrasts highlight SKYW's edge with lower P/E and higher ROE, versus LUV's premium tied to brand scale. Recent momentum is comparable, but LUV shows longer-term strength from strategic shifts like bag fees. Risks include fuel volatility for both, with LUV facing labor pressures and SKYW capacity limits. Market sentiment leans value toward SKYW, balanced by LUV's liquidity.
Tickeron AI Verdict
Tickeron’s AI currently leans toward SkyWest (SKYW) based on superior valuation metrics, including a low P/E ratio and strong profitability indicators like high EPS and ROE, alongside consistent recent gains in a challenging sector. While LUV offers scale and turnaround catalysts, its elevated multiples introduce relative caution. This probabilistic edge favors SKYW for trend stability and positioning ahead of earnings.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is LUV is a Buy and SKYW is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
LUV’s FA Score shows that 2 FA rating(s) are green whileSKYW’s FA Score has 0 green FA rating(s).
- LUV’s FA Score: 2 green, 3 red.
- SKYW’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
LUV’s TA Score shows that 5 TA indicator(s) are bullish while SKYW’s TA Score has 6 bullish TA indicator(s).
- LUV’s TA Score: 5 bullish, 4 bearish.
- SKYW’s TA Score: 6 bullish, 4 bearish.
Price Growth
LUV (@Airlines) experienced а +4.07% price change this week, while SKYW (@Airlines) price change was +5.81% for the same time period.
The average weekly price growth across all stocks in the @Airlines industry was +6.09%. For the same industry, the average monthly price growth was +10.31%, and the average quarterly price growth was +9.80%.
Reported Earning Dates
LUV is expected to report earnings on Jul 22, 2026.
SKYW is expected to report earnings on Jul 23, 2026.
Industries' Descriptions
@Airlines (+6.09% weekly)Airlines industry comprises passenger air transportation, including scheduled and non-scheduled routes. This can include charter airlines, as well as regular commuter ones. Discount pricing and the rise of low-cost carriers over recent decades have expanded the industry by making its services accessible to a much larger global population, compared to the older days when airline travel was a relative luxury for many people in the world. Delta Air Lines Inc., Southwest Airlines Co and United Continental Holdings, Inc. are some of the airlines with the largest stock market capitalizations in the U.S.
| LUV | SKYW | LUV / SKYW | |
| Capitalization | 25.1B | 3.94B | 637% |
| EBITDA | 2.72B | 654M | 416% |
| Gain YTD | 25.496 | -1.096 | -2,327% |
| P/E Ratio | 32.38 | 8.93 | 363% |
| Revenue | 28.9B | 4.12B | 701% |
| Total Cash | N/A | 627M | - |
| Total Debt | 6.4B | 2.48B | 258% |
LUV | SKYW | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 24 | 25 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 26 Undervalued | 57 Fair valued | |
PROFIT vs RISK RATING 1..100 | 100 | 46 | |
SMR RATING 1..100 | 72 | 53 | |
PRICE GROWTH RATING 1..100 | 6 | 48 | |
P/E GROWTH RATING 1..100 | 61 | 72 | |
SEASONALITY SCORE 1..100 | 11 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
LUV's Valuation (26) in the Airlines industry is in the same range as SKYW (57). This means that LUV’s stock grew similarly to SKYW’s over the last 12 months.
SKYW's Profit vs Risk Rating (46) in the Airlines industry is somewhat better than the same rating for LUV (100). This means that SKYW’s stock grew somewhat faster than LUV’s over the last 12 months.
SKYW's SMR Rating (53) in the Airlines industry is in the same range as LUV (72). This means that SKYW’s stock grew similarly to LUV’s over the last 12 months.
LUV's Price Growth Rating (6) in the Airlines industry is somewhat better than the same rating for SKYW (48). This means that LUV’s stock grew somewhat faster than SKYW’s over the last 12 months.
LUV's P/E Growth Rating (61) in the Airlines industry is in the same range as SKYW (72). This means that LUV’s stock grew similarly to SKYW’s over the last 12 months.
| LUV | SKYW | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 78% | 2 days ago 66% |
| Stochastic ODDS (%) | 2 days ago 68% | 2 days ago 69% |
| Momentum ODDS (%) | 2 days ago 72% | 2 days ago 83% |
| MACD ODDS (%) | 2 days ago 65% | 7 days ago 74% |
| TrendWeek ODDS (%) | 2 days ago 68% | 2 days ago 82% |
| TrendMonth ODDS (%) | 2 days ago 67% | 2 days ago 82% |
| Advances ODDS (%) | 6 days ago 70% | 5 days ago 83% |
| Declines ODDS (%) | 2 days ago 74% | 28 days ago 69% |
| BollingerBands ODDS (%) | 2 days ago 68% | 2 days ago 61% |
| Aroon ODDS (%) | 2 days ago 72% | 2 days ago 79% |
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LUV and
Correlation & Price change
A.I.dvisor indicates that over the last year, LUV has been closely correlated with AAL. These tickers have moved in lockstep 71% of the time. This A.I.-generated data suggests there is a high statistical probability that if LUV jumps, then AAL could also see price increases.
SKYW and
Correlation & Price change
A.I.dvisor indicates that over the last year, SKYW has been closely correlated with DAL. These tickers have moved in lockstep 76% of the time. This A.I.-generated data suggests there is a high statistical probability that if SKYW jumps, then DAL could also see price increases.
| Ticker / NAME | Correlation To SKYW | 1D Price Change % | ||
|---|---|---|---|---|
| SKYW | 100% | N/A | ||
| DAL - SKYW | 76% Closely correlated | +0.53% | ||
| UAL - SKYW | 73% Closely correlated | N/A | ||
| ALGT - SKYW | 71% Closely correlated | N/A | ||
| AAL - SKYW | 70% Closely correlated | N/A | ||
| LUV - SKYW | 63% Loosely correlated | -0.35% | ||
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