LUV Southwest Airlines Co Forecast, Technical & Fundamental Analysis

LUV's RSI Oscillator climbs out of oversold territory

The RSI Oscillator 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 24 of the 32 cases the stock moved higher. This puts the odds of a move higher at 75%.

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 58 of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 67%.

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 33 of 53 cases over the following month. The odds of a continued upward trend are 62%.

LUV moved above its 50-day moving average on September 25, 2026 date and that indicates a change from a downward trend to an upward trend.

Following a +4.00% 3-day Advance, the price is estimated to grow further. Considering data from situations where LUV advanced for three days, in 218 of 308 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.

Bearish Trend Analysis

The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.

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 75%.

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.

The Aroon Indicator for LUV entered a downward trend on September 11, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

The Tickeron Valuation Rating of 21 (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 (2.948) is normal, around the industry mean (3.161). P/E Ratio (26.675) is within average values for comparable stocks, (23.655). Projected Growth (PEG Ratio) (0.202) is also within normal values, averaging (2.245). 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 SMR rating for this company is 66 (best 1 - 100 worst), indicating strong sales and a 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 89 (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.