Southwest Airlines Co. (LUV) fair value analysis

S&P 500 · Updated 2026-09-07

Southwest Airlines Co. operates as a major commercial airline carrier in the United States, providing passenger air transportation services. The company serves destinations throughout North America, including the continental United States, Hawaii, and Mexico.

Forward Fair Value verdict

Undervalued

Based on TickrTrends' weekly Forward Fair Value model, LUV is trading at more than a 25% discount to estimated fair value.

LUV currently ranks #1 of 107 Industrials stocks by discount to Forward Fair Value. It has screened as Undervalued for 3 consecutive weekly runs.

Last price: $39.62
Sector: Industrials
12-month range: $30.30–$49.64

Derived indicators

Coarse bands from TickrTrends' weekly models; exact figures are part of the full report.

Quality grade: F
Leverage: Moderate
Margin trend: Expanding
Revenue growth: Modest
RSI zone: Oversold
52-week position: The lower-middle quarter of its range

What our data shows for LUV

Our model validated 17 trailing price-to-earnings windows for LUV, built from quarterly earnings records.
Shares are trading in the middle of their 12-month price range of $30.30–$49.64.
The 14-day relative strength index sits at an oversold 28.

The exact numbers are one step away

The precise Forward Fair Value dollar figure for LUV
Exact discount / premium to today's price
The normalized historical P/E behind the estimate, and how many quarters support it
Forward EPS input and fiscal-year basis
Screeners and rankings across the full S&P 500 and Nasdaq universes

See the exact fair value →

How Forward Fair Value works

TickrTrends computes a Forward Fair Value for every covered stock each week: a conservatively normalized historical price-to-earnings multiple is applied to the analyst-consensus earnings estimate for the next full fiscal year. Every input window is validated for continuity and every result is screened for plausibility before publication.

Recent LUV news

TickrTrends' derived news-sentiment signal for LUV is currently leaning positive, computed from recent coverage.

Afterburners Could Kick In Soon On Southwest Airlines Stock - Rating Upgrade (NYSE:LUV) (seekingalpha.com, 2026-09-04)
TickrTrends take: Southwest Airlines operates in the Industrials sector where TickrTrends currently assesses it as undervalued based on its derived valuation analysis. A rating upgrade announcement suggests that market participants may be recognizing improvement in the company's fundamentals or outlook, which could narrow the gap between current market price and intrinsic value. For valuation-focused investors, monitoring whether this upgrade translates into institutional buying pressure and whether the stock's price movement aligns with the undervalued assessment will be important in determining if the valuation gap persists or closes.
LUV Looks 11.9% Undervalued on GF Value™ as It Expands Premium Traveler Services (gurufocus.com, 2026-09-02)
TickrTrends take: Southwest Airlines (LUV) currently trades at a valuation discount according to TickrTrends' assessment, which aligns with the GF Value analysis suggesting the stock is undervalued by approximately 12 percent. As an industrial sector company, LUV's expansion of premium traveler services represents an operational development that could influence how the market prices its earnings potential going forward. Investors focused on valuation metrics should monitor whether this service expansion translates into margin improvements that could narrow or widen the current gap between market price and intrinsic value.

What people are saying

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TickrTrends weekly updates

2026-09-07 — No material change this week: the verdict, bands and grades all held steady.
2026-09-06 — TickrTrends' derived indicators for LUV showed notable shifts this week. The stock's momentum indicator downgraded from A to none, while the relative strength index zone moved from neutral to oversold, signaling intensified selling pressure. Despite these weakening technical signals, the current valuation verdict remains Undervalued.
2026-08-31 — TickrTrends initiated weekly Forward Fair Value coverage of this stock.

Frequently asked questions

Is LUV stock undervalued?

Based on TickrTrends' Forward Fair Value model (updated 2026-09-07), LUV is trading at more than a 25% discount to estimated fair value and screens as undervalued. The exact fair value and discount are available to subscribers.

What is LUV's TickrTrends verdict?

LUV's current verdict is Undervalued, refreshed with every weekly Forward Fair Value run.

How does LUV compare to other Industrials stocks?

LUV ranks #1 of 107 Industrials stocks in TickrTrends' coverage when sorted by discount to Forward Fair Value.

Is LUV overbought or oversold?

LUV's 14-day RSI is in the oversold zone on TickrTrends' latest weekly data.

All Industrials fair-value coverage →

Head-to-head comparisons

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