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Are analysts right about Southwest Airlines (LUV)?

Industrials Β· price $43.68 Β· median target $50.00 (+14%)
In short β€” Over the past 12 months, 36% of analyst price targets on Southwest Airlines turned out profitable, for an average return of +6% (across 210 timestamped calls). The current consensus is "Hold" with a median price target of $50.00 (+14% vs the current $43.68, from 14 analysts).

πŸ“ˆ See the interactive version (live chart) β†’

πŸ”— Related pages on Southwest Airlines β€” Financials & fundamentals  Β·  If I had invested  Β·  Dividend
Current price
$43.68
Median target (12 mo)
$50.00 +14%
Analyst accuracy (1 yr)
36%
Avg return / call (1 yr)
+6%
πŸ’° Performance & Β« if I invested Β» πŸ“Š Interactive analysis

Historical analyst accuracy

For Southwest Airlines, we replayed every analyst price target of the past 12 months and measured the real outcome: 36% were profitable, average return +6% (210 calls). At 3 months: +1% average return (43% profitable). The higher the %, the more often analysts were right on this stock.

Most reliable analysts on this stock (past track record)

Their past track record on this stock (targets replayed against real prices) β€” not a forecast of what will happen.

Analyst / brokerCalls i% profitable iAvg return i
Morgan Stanley3116%-15%
Raymond James2737%+7%
Deutsche Bank1953%+25%
JP Morgan1718%-35%
Barclays1631%+6%

Valuation

Is Southwest Airlines overvalued, and is it a good time to buy Southwest Airlines right now? If you're wondering, here's a recap to make up your own mind: Southwest Airlines's valuation vs its sector median, to weigh alongside analyst reliability (above) and past performance. Educational information, not buy advice.

The P/E (price Γ· earnings per share) = how many years of earnings you pay for the stock. The higher it is, the more growth the market expects β€” but the pricier the stock, so more vulnerable if growth disappoints. The forward P/E uses next year's expected earnings: lower than the current P/E = rising expected earnings. We compare it to the sector median to see whether the stock is expensive relative to its peers.

MetricSouthwest AirlinesSector median (Industrials)
P/E21.326.9
Forward P/E10.618.7
Net margin3%11%

πŸ‘‰ Southwest Airlines trades below its sector median (21.3 vs 26.9) β€” potentially undervalued, or lower expected growth.

πŸ“– P/E, PEG, margin…: see the glossary

πŸ’΅ Dividend : Southwest Airlines pays about $0.72/share/yr β†’ 1.43% yield. what is this?

Frequently asked questions

Is Southwest Airlines a buy right now?

The analyst consensus on Southwest Airlines (LUV) is "Hold" (33 bullish, 7 bearish calls over 12 months). This is not advice: historically, 36% of their targets on this stock turned out profitable over 1 year.

What is Southwest Airlines's price target?

The median 12-month price target is $50.00 (+14% vs $43.68), ranging from $35.00 to $65.00 (14 analysts).

Are analysts accurate on Southwest Airlines?

Over 1 year, 36% of analyst targets on Southwest Airlines were profitable, for an average return of +6% (across 210 timestamped calls). This is JPI Invest's accuracy metric.

What is the Southwest Airlines stock forecast?

Analysts target a median of $50.00 within 12 months, i.e. +14% vs the current price. The most bullish targets $65.00, the most cautious $35.00.

What is the Southwest Airlines stock forecast for 2026 or long term (2030)?

Note: analyst targets are 12-month (median $50.00, +14%), NOT 2030. No reliable 5-10 year price forecast exists (Β« 2030 prediction Β» models are speculative). The most useful inputs: the 12-month median above, these analysts' historical accuracy (36%), and the stock's past trajectory.

Is Southwest Airlines overvalued?

Its P/E is 21.3, forward P/E 10.6. A forward P/E lower than the current P/E means earnings are expected to grow.

πŸ“Š See the full interactive analysis of Southwest Airlines β†’

What is JPI Invest?

JPI Invest aggregates analyst recommendations across the entire S&P 500 (plus the S&P MidCap 400), replays them against real prices and measures who predicts best β€” on results, not reputation. Instead of taking a price target at face value, you see each analyst's track record on each stock.

Explore JPI Invest for free β†’ How it works: the method β†’

⚠️ Educational information, not investment advice. Analyst price targets are 12-month and can be wrong. Data via Yahoo Finance, recomputed by JPI Invest.