Southwest Airlines (NYSE:LUV) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Southwest from a "strong‑buy" to a "hold" and issued a FY2028 EPS estimate of $5.00; the stock's consensus rating is currently a Hold with a $47.34 average target (8 Buy, 9 Hold, 4 Sell).
• Shares opened at $38.61 (1‑year range $23.82–$55.11) with a market cap of $18.97B and a P/E of 45.97; Southwest reported $0.58 EPS beating estimates while revenue of $7.44B slightly missed, and it gave FY2026 guidance around $4.00 EPS.
• Analysts warn of near‑term headwinds from rising jet‑fuel costs tied to the U.S.–Iran conflict, TSA/operational risks, and a wave of downward revisions that are pressuring margins and sentiment.

Southwest Airlines (NYSE:LUV - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports. Zacks Research also issued estimates for Southwest Airlines' FY2028 earnings at $5.00 EPS.

LUV has been the topic of a number of other research reports. Wall Street Zen raised Southwest Airlines from a "hold" rating to a "buy" rating in a research note on Saturday, February 7th. The Goldman Sachs Group raised their target price on shares of Southwest Airlines from $29.00 to $32.00 and gave the stock a "sell" rating in a report on Friday, January 30th. Rothschild & Co Redburn boosted their price target on shares of Southwest Airlines from $27.00 to $35.00 and gave the company a "sell" rating in a report on Thursday, March 5th. Morgan Stanley upped their price target on shares of Southwest Airlines from $50.00 to $55.00 and gave the company an "overweight" rating in a research report on Friday, January 30th. Finally, TD Cowen decreased their price objective on shares of Southwest Airlines from $66.00 to $55.00 and set a "buy" rating for the company in a research note on Monday. Eight investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $47.34.

Southwest Airlines Price Performance

NYSE LUV opened at $38.61 on Wednesday. Southwest Airlines has a 1 year low of $23.82 and a 1 year high of $55.11. The business's fifty day moving average is $46.72 and its two-hundred day moving average is $38.62. The stock has a market capitalization of $18.97 billion, a P/E ratio of 45.97, a P/E/G ratio of 0.30 and a beta of 1.10. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52.

Southwest Airlines (NYSE:LUV - Get Free Report) last released its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.02. The business had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.51 billion. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The company's revenue was up 7.4% compared to the same quarter last year. During the same period last year, the company posted $0.56 EPS. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. On average, research analysts forecast that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Institutional Trading of Southwest Airlines

Several institutional investors have recently made changes to their positions in the stock. SHP Wealth Management acquired a new position in Southwest Airlines in the 4th quarter valued at approximately $25,000. GHP Investment Advisors Inc. acquired a new stake in shares of Southwest Airlines during the 4th quarter valued at $26,000. Entrust Financial LLC acquired a new stake in shares of Southwest Airlines during the 4th quarter valued at $26,000. Los Angeles Capital Management LLC purchased a new position in shares of Southwest Airlines during the 4th quarter valued at $26,000. Finally, Optima Capital LLC acquired a new position in shares of Southwest Airlines in the fourth quarter worth $27,000. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Key Southwest Airlines News

Here are the key news stories impacting Southwest Airlines this week:

• Positive Sentiment: Rothschild & Co Redburn raised its price target on LUV to $35 from $27 (but kept a Sell rating), a small upbeat signal that some firms see more value than before. Southwest Airlines Co. (LUV) Target Increased to $35 at Redburn
• Neutral Sentiment: Jefferies cut its price target to $41 from $48 and moved to a Hold — the lower target trims upside but still implies modest upside vs. the current price, so this is a mixed signal for traders. Jefferies Lowers LUV Price Target to $41
• Neutral Sentiment: Coverage pieces and price‑prediction roundups note that LUV is up ~30% over the past year but down sharply in the last month — useful context but not a direct catalyst. Southwest Price Prediction: What Wall Street Thinks LUV Is Worth in 2026
• Negative Sentiment: Rising jet‑fuel concerns tied to the U.S.–Iran conflict and related supply disruptions are pressuring airline margins; higher fuel expectations are a clear near‑term earnings headwind for Southwest and the group. Why Is Southwest Airlines Stock Sliding Thursday?
• Negative Sentiment: Industry operational risks — TSA slowdowns at busy airports and reports of material added fuel costs for U.S. carriers — add execution risk and potential margin pressure. US airlines hit turbulence with TSA delays, fuel cost pressures
• Negative Sentiment: Other brokers (e.g., TD Cowen) have trimmed expectations, and the stream of downward revisions and cautious notes is amplifying selling pressure. TD Cowen Has Lowered Expectations for Southwest Airlines

Southwest Airlines Company Profile

Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest's operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.

Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.

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