What's Going On With Southwest Airlines Stock On Tuesday?

Southwest Airlines Co. (NYSE:LUV) shares are trading higher during Tuesday’s premarket session. Nasdaq futures are down 0.85% while S&P 500 futures have shed 0.38%.

Despite broader market declines, Southwest Airlines is experiencing a premarket uptick, moving against the general downtrend. This rise is particularly notable given the negative performance across major indices, with the Dow Jones, Nasdaq, and S&P 500 all showing losses.

The Energy sector, however, is bucking the trend with a 1.20% increase, which may offer some peripheral support to related industries, including transport.

Southwest’s 70.37% Gain Signals Strong Momentum

Over the past 12 months, Southwest Airlines has seen a significant gain of 70.37%, indicating strong long-term momentum. Currently, the stock is trading near its 52-week high of $54.70, just slightly above the recent low of $23.82.

Southwest’s Earnings Outlook and Analyst Ratings

Looking further out, the next major catalyst for the stock arrives with the April 22 earnings report.

Analysts are tracking the company’s performance closely, given the substantial improvements and strategic shifts expected to be discussed.

• EPS Estimate: 52 cents (Up from a loss of 13 cents YoY)
• Revenue Estimate: $7.16 billion (Up from $6.43 billion YoY)
• Valuation: Forward P/E of 64.7x (Indicates premium valuation)

Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $42.44. Recent analyst moves include:

• Susquehanna: Neutral (Raises Target to $55.00) (Feb. 3)
• UBS: Neutral (Raises Target to $51.00) (Feb. 2)
• Jefferies: Hold (Raises Target to $48.00) (Feb. 2)

Southwest Airlines Scores High on Benzinga Edge Momentum

Below is the Benzinga Edge scorecard for Southwest Airlines, highlighting its strengths and weaknesses compared to the broader market:

• Value: Neutral (Score: 54.51/100) — Reflects a moderate valuation compared to peers.
• Quality: Neutral (Score: 64.67/100) — Indicates a solid balance sheet and operational efficiency.
• Momentum: Bullish (Score: 92.65/100) — Stock is outperforming the broader market significantly.

LUV Price Action: Southwest Airlines shares were up 2.25% at $52.26 during premarket trading on Tuesday, according to Benzinga Pro data.

Photo by GemStocksy via Shutterstock