LUV · NASDAQ · STOCK
Southwest Airlines
$45.31
52W $28.98 – $55.11
57/100
$23.02B
28.3
1.14
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is LUV Bullish or Bearish?
Bullish.
Innellis AI committee rates Southwest Airlines (LUV) Buy with a composite score of 57/100
, based on 6 analysts with 50% agreement.
Last updated August 09, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +17.53 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -2.47 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Growth Analyst sees a compelling case — eps growing 141.5% yoy. Risk Analyst remains cautious — current ratio of 0.52 is tight -- limited short-term liquidity cushion. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- EPS growing 141.5% YoY — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- MACD histogram positive -- bullish momentum — Technical
- Market regime is bullish (Bull market -- normal position sizing) — Macro
- News sentiment is positive (+0.20 across 30 articles, 14d) — News
Bear Case
- P/E of 27.5 is moderate-to-rich — Value
- Current ratio of 0.52 is tight -- limited short-term liquidity cushion — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of August 09, 2026
Overall Committee Score
57/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 62%
of 158 Industrials peers
Value Analyst
neutral
48
/ 100 · Moderate confidence
Fair value -- neither a bargain nor obviously overpriced
− P/E of 27.5 is moderate-to-rich
Growth Analyst
bullish
70
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ EPS growing 141.5% YoY
Technical Analyst
neutral
58
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Current ratio of 0.52 is tight -- limited short-term liquidity cushion
Macro Analyst
bullish
70
/ 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
64
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.20 across 30 articles, 14d)
Portfolio Manager
neutral
55
/ 100 · Moderate confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− 4 existing position pair(s) are highly correlated already
Investment Thesis Evolution
Committee score moved marginally from 57.5 to 57.5.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 1 appeared.
Analyst-level changes:
- News Analyst: +1 bullish signal(s).
Comparing 2026-08-08 to 2026-08-09 (1 day apart).
Technical Analysis
RSI (14)
49.9
Neutral
MACD Histogram
0.048
Bullish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Hh Hl
Support
$40.68
Resistance
$53.12
Bollinger %B
0.49
Inside Bands
Price vs Moving Averages
EMA 9
$47.04
Below
EMA 21
$47.13
Below
EMA 50
$46.36
Below
EMA 200
$42.60
Above
Fundamental Analysis
Valuation
73
Growth
78
Profitability
39
Financial Health
38
Cash Flow
15
Valuation
P/E Ratio
28.3×
P/B Ratio
3.28×
PEG Ratio
0.21
Dividend Yield
1.53%
52W High
$55.11
52W Low
$28.98
Quality & Growth
ROE
552.6%
ROA
151.8%
Gross Margin
6102.2%
Operating Margin
346.2%
Revenue Growth YoY
—
Debt / Equity
0.97
AI Fundamental Assessment
P/E ratio of 28.3 (moderate relative to a 15-40x range); Price-to-book of 3.3x; PEG ratio of 0.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 5.5%; Return on assets of 1.5%; Net margin of 2.8%; Gross margin of 61.0%; Current ratio of 0.49 (tight short-term liquidity); Debt-to-equity of 0.97; Free cash flow per share is negative (-1.26); Most recent quarter beat estimates by 82.5%; EPS growth accelerating (-22.4% -> +108.9% QoQ); Average YoY EPS growth of 118.6%; Analyst estimates falling over recent quarters
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