Home / Business and Economy / Southwest Airlines Stock Soars Past S&P 500
Southwest Airlines Stock Soars Past S&P 500
2 Jan
Summary
- Southwest Airlines scheduled to report Q4 2025 earnings on January 29.
- LUV stock has surged 23% over the past 52 weeks.
- Analysts maintain a cautious 'Hold' rating on LUV stock.
Southwest Airlines is preparing to reveal its fourth-quarter fiscal year 2025 earnings on January 29, with analysts projecting a slight dip in earnings per share compared to the prior year. However, the Dallas-based carrier's stock has demonstrated remarkable strength, climbing 23% over the past 52 weeks, outperforming major market indices like the S&P 500. This performance comes despite a mixed Q3 report where revenue fell slightly short of expectations, although earnings per share surpassed forecasts.
Looking ahead, analysts expect a significant rebound in fiscal year 2026, with earnings per share projected to grow substantially year-over-year. This optimistic outlook for future earnings growth is a key factor influencing investor sentiment. The company's simple service model and affordable fares continue to be its hallmarks in a competitive industry.
Currently, Wall Street analysts hold a generally cautious stance, with a consensus 'Hold' rating for Southwest Airlines stock. While a significant portion of analysts recommend holding the stock, there is a divergence in opinions, with some suggesting 'Strong Buy' and others advising 'Sell'. The stock is trading above its average price target, indicating potential upside.
