LUV stock: buy or sell

LUV stock price: $62.04 3.66% At close on Apr 21st, 2021

Updated on:
Apr 22nd, 2021

2

LUV stock brief

  • Southwest Airlines closed on Wednesday at $62.04 (3.66%) prior to presenting financial results on Thursday
  • Southwest Airlines released its financial report on Thursday
  • Price is drawing a scaled uptrend since last January with higher tops and higher bottoms. Up to date, shares made a 41.90% profit since the beginning of this rally
  • JPMorgan Chase & Co. posted a hold rating for Southwest Airlines on Tuesday, targeting $66.00
  • Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets.

Should I buy Southwest Airlines stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $LUV stock a buy?

Currently, Southwest Airlines stock matches one trading strategy:

ATH buy setup

All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at all-time highs is that price doesn't struggle with upper resistances, and usually it rises rapidly. However, there's the risk of a bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is always important. Southwest Airlines can break to all-time highs any time soon, as it only needs to rise a 4.98%. Setup your buy order at $65.13 if you want to trade with this strategy. The stop loss would be set at $58.62

Buy setupBuy pointStop lossRisk
ATH buy setup$65.13$58.6210.00%

Should I sell Southwest Airlines stock?

How to know when is it time to sell Southwest Airlines stock?. Trading strategies give us the ability us to avoid impetuous decisions based on our emotions or the noise surrounding the market. We like very simple strategies to guide us on when is the best time to sell our shares. Be aware that these strategies are not intended for selling short $LUV stock

A golden rule is that you should not keep a trade that shows a higher than expected losses upon the buy. The timing to sell your stock always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell Southwest Airlines stock?

Currently, Southwest Airlines stock doesn't match any of our preferred sell setups, so if you hold Southwest Airlines shares and your operation is in profit probably is not time to sell now

Southwest Airlines ratings

In the last month, 10 analyst ratings were published for Southwest Airlines. General sentiment is bullish, with 7 out of 10 publishing positive forecasts

Southwest Airlines analysts' ratings - Last 30 days
Brokerage firmRating
Mar 23rd, 2021
Argus NeutralStrong buy
Mar 29th, 2021
Argus NeutralStrong buy
Mar 30th, 2021
Jefferies Financial Group Strong buy
Apr 6th, 2021
Morgan Stanley Buy
Apr 12th, 2021
Raymond James Buy
Apr 13th, 2021
Morgan Stanley Buy
Apr 14th, 2021
JPMorgan Chase & Co. SellNeutral
Apr 15th, 2021
Barclays Neutral
Apr 19th, 2021
Raymond James Buy
Apr 20th, 2021
JPMorgan Chase & Co. SellNeutral

Southwest Airlines stock analysis

Southwest Airlines stock started an uptrend last January, and grew an amazing 41.90%. Rising highs and lows can be seen easily on a chart and how price provided very few buy points on the breakouts. Latest pullback was in late March, when price bounced at $56.42. Like in all uptrends, price needs to rest and now price is consolidating the gains in a range between $64.75 and $56.42

SMAs overview

LUV stock SMAs chart

Supports and resistances

The current resistance levels are:

  • R1: $62.33 (0.47% above)
  • R2: $62.73 (1.11% above)
  • R3: $62.76 (1.16% above)
  • The current supports are:

  • S1: $60.52 (-2.45% below)
  • S2: $59.80 (-3.61% below)
  • S3: $59.23 (-4.53% below)
  • Bollinger bands

    LUV stock Bollinger Bands chart

    Relative strength index

    The RSI dropped below the overbought level of 70 in mid-March after just crossing to the overbough zone for a single day (weak signal). The RSI reading on Wednesday was 54.02. Since RSI lost the overbought zone, Southwest Airlines price merely changed a 0.10%

    LUV stock RSI chart

    Southwest Airlines stock price history

    Southwest Airlines started trading on Jan 2nd, 1980 priced at $0.18 per share1. Since then, LUV stock surged by 34,366.67%, with an average of 838.21% per year. An investment of thousand dollars at that time would worth $344,666.67 nowadays.

    1: Adjusted price after possible price splits or reverse-splits

    LUV stock price history chart

    Price target for Southwest Airlines stock

    Nobody knows how much a share will be priced in the future. Banks and financial organisations post their analysis predicting how a particular stock will performance in the future.

    The following table shows the price predictions posted by analysts in the last month. If you are a small investor you don't have to buy or sell based on these forecasts.

    The average price target for Southwest Airlines stock calculated from the table below is $70.40. Southwest Airlines closed at $62.04 on Wednesday, that is a 11.88% than the target price.

    Southwest Airlines stock price predictions
    Brokerage firmPrice target
    Mar 23rd, 2021
    Argus $68.00
    Mar 29th, 2021
    Argus $68.00
    Mar 30th, 2021
    Jefferies Financial Group $55.00$70.00
    Apr 6th, 2021
    Morgan Stanley $59.00$80.00
    Apr 12th, 2021
    Raymond James $54.00$71.00
    Apr 13th, 2021
    Morgan Stanley $59.00$80.00
    Apr 14th, 2021
    JPMorgan Chase & Co. $44.00$66.00
    Apr 15th, 2021
    Barclays $51.00$64.00
    Apr 19th, 2021
    Raymond James $54.00$71.00
    Apr 20th, 2021
    JPMorgan Chase & Co. $44.00$66.00

    Earnings and financials

    On Thursday, Southwest Airlines ($LUV) had the financial event and released the report. LUV topped Wall St estimates and presented of $-1.72, that is a 7.03% improvement compared to the estimates of $-1.85. However, reported sales of $2.1 billion were in line with market predictions.

    Compared to the same quarter last year, EPS was $-0.15, so current EPS means a reduction of -1,046.67%. Looking at revenues, figures collapsed a -64.87% compared to $57.3B same quarter a year ago.

    LUV ($LUV) presents financial report next July.

    Southwest Airlines performance

    LUV performance compared
    Company1m3m6m
    Southwest Airlines ($LUV) 5.20% 29.90% 53.20%

    Important:
    The thoughts given in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not have any knowledge of the specific situations of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are expressed for education purposes only

    LUV summary

    Wednesday, April 21st, 2021
    Open$59.62
    Close$62.04
    Day range$58.91 - $62.07
    Previous close$59.85
    Session gain3.66%
    Average true range$1.99
    50d mov avg$58.92
    100d mov avg$52.79
    200d mov avg$45.25
    Earnings dateJuly 22nd, 2021

    Frequently asked questions

    What is Southwest Airlines stock symbol?

    Southwest Airlines Co. is a public company trading in the US stock market with the LUV symbol

    Is Southwest Airlines stock a buy or sell?

    Southwest Airlines received 10 ratings in the last 30 days: 7 bullish, 0 bearish and 3 neutral.

    Will LUV go up?

    Southwest Airlines had different price predictions issued by analysts in the last 4 weeks forecasting the target price to $70.40. That is a 13.48% than the current price ($62.04).