AlphaStocks
5.2
Consider Buy

SOUTHWEST AIRLINES CO (LUV)

Industrials / Passenger Airlines

S&P 500

$41.48

Below average on several measures. Research carefully.

Consider Buy

Score based on 4 of 5 models — moderate confidence

#505out of 1126 in Industrials

Is SOUTHWEST AIRLINES CO a Good Investment in 2026?

SOUTHWEST AIRLINES CO (LUV) scores 5.2 out of 10 on AlphaStocks' composite model, earning a Consider Buy rating. The Piotroski model rates SOUTHWEST AIRLINES CO as Strong (7/9). However, the Greenblatt Magic Formula model rates it Caution — Bottom half (rank 85%). SOUTHWEST AIRLINES CO currently trades below its estimated fair value of $44, suggesting potential upside. SOUTHWEST AIRLINES CO ranks #505 out of 1126 stocks in the Industrials sector.

This summary is algorithmically generated and is not financial advice.

Key Metrics

P/E52.5ROE3.7Market Cap21BDiv Yield1.8

Estimated Fair Value

$43.996% below

Trading near or slightly below estimated fair value.

Model-based estimate, not a price target.

5-Model Analysis

Each model evaluates this stock from a different angle. Combined, they form the composite score above.

Piotroski

Strong

7/9

Buffett

Neutral

Business quality & competitive moat

Graham

Neutral

69% above fair value

Lynch

Neutral

Growth rate vs price (PEG)

Greenblatt

Caution

Bottom half (rank 85%)

Frequently Asked Questions

Is SOUTHWEST AIRLINES CO (LUV) a good investment?
Based on AlphaStocks' composite analysis, SOUTHWEST AIRLINES CO (LUV) scores 5.2 out of 10, earning a Consider Buy rating. This score is below average, suggesting caution. Trading near or slightly below estimated fair value.
What is SOUTHWEST AIRLINES CO's Piotroski F-Score?
SOUTHWEST AIRLINES CO's Piotroski F-Score status is Strong. The raw score is 7/9. The Piotroski F-Score evaluates financial health using 9 fundamental signals including profitability, leverage, and operating efficiency.
Is LUV overvalued or undervalued?
Based on AlphaStocks' model-based fair value estimate of $44, LUV appears undervalued. The stock currently trades 6% below its estimated fair value. Trading near or slightly below estimated fair value.
How does LUV compare to other Industrials stocks?
SOUTHWEST AIRLINES CO ranks #505 out of 1126 stocks in the Industrials sector, placing it in the top 45% of its sector by composite score. This is an above-average position relative to sector peers.
What do investment models say about LUV?
AlphaStocks evaluates LUV using five proven investment models. Piotroski: Strong; Buffett: Neutral; Graham: Neutral; Lynch: Neutral; Greenblatt Magic Formula: Caution. These models are combined into a single composite score of 5.2/10.

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Scores are algorithm-generated research tools, not investment recommendations. Past performance does not guarantee future results. Always do your own due diligence. Full disclaimer