Southwest Airlines Company Common Stock (LUV) Stock Analysis — Latest Investor Quotes & Trade Calls

Southwest Airlines Posts Surprise Profit Amid Policy Change

"Third name is Southwest, ticker LUV. So stock is rising more than 5% in postmarket trading. They posted a surprise adjusted profit. So at least we're ending on a good note. So, the good news was boosted by fees from its new policy of charging passengers for bags. Maybe it's not good news for us and expected record operating sales in the fourth quarter. So, the company earned 11 cents per share versus an estimated loss of 3 cents. I always just find it fun when the estimation is a loss and then you post a gain. So, the stock is up fractionally for the year through Wednesday close, but tomorrow it will probably see a pop."

The insight highlights Southwest Airlines's surprise profit driven by a new fee policy, contrasting with analyst expectations of a loss. The mention of potential near-term upward movement (pop) reinforces a bullish outlook, supported by the company's broader turnaround initiatives.

Trade Call on Southwest Airlines Using Valuation Metrics

-0.65%current return

"Now, I hit the analyze button on Southwest. Click below. This is why Im interested in this company. I have a low price of 55, high price of 160, middle price of 100. Huge potential returns if they can run the numbers above. Even if they dont, even if they hit the low numbers, Im still going to make potentially 18% return on my money based on today."

The speaker outlines an actionable trade call for Southwest Airlines, basing the decision on valuation metrics with a target range of $55 to $160 and a middle target of $100, suggesting an anticipated 18% return even at the conservative estimate.