Throughout the last three months, 11 analysts have evaluated Southwest Airlines (NYSE:LUV), offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $33.32, with a high estimate of $42.00 and a low estimate of $27.00. Marking an increase of 2.33%, the current average surpasses the previous average price target of $32.56.

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive Southwest Airlines is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Southwest Airlines's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Southwest Airlines analyst ratings.

Discovering Southwest Airlines: A Closer Look

A Deep Dive into Southwest Airlines's Financials

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Southwest Airlines's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 0.89%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Southwest Airlines's net margin is impressive, surpassing industry averages. With a net margin of 3.77%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Southwest Airlines's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.51%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Southwest Airlines's ROA excels beyond industry benchmarks, reaching 0.76%. This signifies efficient management of assets and strong financial health.

Debt Management: Southwest Airlines's debt-to-equity ratio is below the industry average. With a ratio of 0.78, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.