Southwest Airlines Stock Technical Analysis
| LUV Stock | USD 39.45 1.70 4.50% |
As of the 27th of April, Southwest Airlines trades around 39.45 per share. Indicator dispersion currently includes Coefficient Of Variation of -7,763, variance of 14.66, and Risk Adjusted Performance of -0.0045. The evaluation incorporates historical dispersion and relative strength measures. Normalized comparisons highlight positioning versus competitors.
Southwest Airlines Momentum Analysis
Momentum indicators are widely used technical indicators which help to measure the pace at which the price of specific equity, such as Southwest, fluctuates. Many momentum indicators also complement each other and can be helpful when the market is rising or falling as compared to SouthwestSouthwest |
Analyst Consensus
| Target Price | Consensus | # of Analysts | |
| 45.11 | Hold | 24 | Odds |
Current and historical analyst recommendations for Southwest Airlines are summarized from research sources. The view also includes average analyst consensus. Analyst earnings estimates for Southwest serve as the benchmark against which quarterly results are judged. The number of analysts covering Southwest Airlines reflects its institutional relevance and information availability. High forecast dispersion for Southwest Airlines suggests genuine analytical uncertainty about future results. Weighing consensus views alongside independent fundamental analysis of Southwest Airlines provides a more balanced perspective.
Quarterly Earnings Growth 50.8% | Dividend Share 0.72 | Earnings Share 1.5 | Revenue Per Share | Quarterly Revenue Growth 12.8% |
Southwest Airlines's market price can diverge from book value, the accounting figure shown on Southwest's balance sheet. Trading price represents the transaction level agreed by market participants.
Southwest Airlines' estimated value and market price are complementary but separate measures of worth. For Southwest Airlines, key inputs include a P/E ratio of 29.96, a P/B ratio of 2.8, a profit margin of 1.49%, and ROE of 5.25%.
What-If Analysis
Backtesting a what-if scenario on Southwest Airlines shows how the stock may have behaved if the position had been entered, held, or resized under different historical assumptions. Enterprise value (TTM) is near 22.35 Billion and annual revenue is around 28.06 Billion. The point is not to predict the future from one chart, but to understand how sensitive the trade has been to timing and holding assumptions.
| 01/27/2026 |
| 04/27/2026 |
An initial 0.00 allocation to Southwest Airlines on January 27, 2026 held through today would generate 0.00 in net gains. The change equals a 0.0% net return in Southwest Airlines on balance over a 90 day window. The competitive set for Southwest Airlines includes UL Solutions, MasTec, LATAM Airlines, Woodward, XPO Logistics, TransUnion, and Joby Aviation. Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the... More
Upside and Downside Indicators for Southwest Airlines Signals
The momentum profile for Southwest Airlines describes how price movement distributes across upside and downside channels. Current price is compared to recent trend direction and momentum readings.
| Information Ratio | -0.02 | |||
| Maximum Drawdown | 26.05 | |||
| Value At Risk | -5.33 | |||
| Potential Upside | 5.09 |
Market Risk Indicators for Southwest Airlines Dashboard
Southwest Airlines market risk signals reflect the scope and pattern of historical return variability. Value-at-risk estimates translate volatility into a probability-weighted loss threshold for a given confidence level.| Risk Adjusted Performance | -0.0045 | |||
| Jensen Alpha | -0.06 | |||
| Total Risk Alpha | -0.06 | |||
| Treynor Ratio | -0.03 |
While mean reversion in Southwest Airlines is a statistically observable tendency, it operates on uncertain timelines. Mean reversion signals in Southwest Airlines' arise when prices disconnect from earnings, book value, or historical multiples. Mean reversion in Southwest Airlines is more reliable over longer time horizons than shorter ones. In highly covered equities like Southwest Airlines, the mean reversion window tends to be shorter.
Technical Indicators
| Cycle Indicators | ||
| Math Operators | ||
| Math Transform | ||
| Momentum Indicators | ||
| Overlap Studies | ||
| Pattern Recognition | ||
| Price Transform | ||
| Statistic Functions | ||
| Volatility Indicators | ||
| Volume Indicators |
| Risk Adjusted Performance | -0.0045 | |||
| Market Risk Adjusted Performance | -0.02 | |||
| Mean Deviation | 2.69 | |||
| Coefficient Of Variation | -7,763 | |||
| Standard Deviation | 3.83 | |||
| Variance | 14.66 | |||
| Information Ratio | -0.02 | |||
| Jensen Alpha | -0.06 | |||
| Total Risk Alpha | -0.06 | |||
| Treynor Ratio | -0.03 | |||
| Maximum Drawdown | 26.05 | |||
| Value At Risk | -5.33 | |||
| Potential Upside | 5.09 | |||
| Skewness | 1.78 | |||
| Kurtosis | 7.78 |
Southwest Airlines Backtested Returns
Southwest Airlines indicates a very low volatility profile under the selected horizon. It records an Efficiency (Sharpe) Ratio of close to zero, indicating risk-adjusted returns over the last 3 months. Volatility modeling revealed twenty-four technical measures impacting risk exposure. Please analyze metrics such as Coefficient Of Variation of -7,763, variance of 14.66, and risk-adjusted performance of -0.0045 to confirm variance-based stability. The company has a Beta of 2.21, which signifies elevated sensitivity to broad market movements. Southwest Airlines tends to amplify market moves - gaining more in rallies but giving back more during declines. Southwest Airlines at this moment has a risk of 3.91%.
Auto-correlation | -0.19 |
Insignificant reverse predictability
Serial correlation analysis for Southwest Airlines reveals insignificant reverse predictability across the intervals from 27th of January 2026 to 13th of March 2026 and from 13th of March 2026 to 27th of April 2026. The degree of alignment between past and current intervals shapes expectations about Southwest Airlines's price persistence. At -0.19, over 19.0% of current Southwest Airlines price movement aligns with historical price trajectory. Given that Southwest Airlines has negative autocorrelation for the selected time horizon, market participants may evaluate potential contrarian price behavior over comparable future intervals.
| Correlation Coefficient | -0.19 | |
| Spearman Rank Test | 0.17 | |
| Residual Average | 0.0 | |
| Price Variance | 2.14 |
This technical analysis module for Southwest Airlines is structured around price and volume data. This approach uses standard technical indicators across price data.
Technical Analysis
This analysis covers thirty-seven data points across the selected time horizon. The Average True Range was developed by J. Welles Wilder in 1970s. It is one of components of the Welles Wilder Directional Movement indicators. The ATR is a measure of Southwest Airlines volatility. High ATR values indicate high volatility, and low values indicate low volatility.
Technical Analysis Methodology & Indicators
Technical analysis of Southwest Airlines evaluates price structure, momentum, and volatility clustering. Mean-reversion patterns can emerge after volatility spikes. Southwest Airlines has a market cap of 19.28 B, P/E of 29.96, ROE of 10.06%.
Reported values for Southwest Airlines are derived from periodic company reporting and market reference feeds and standardized for analysis. Sell-side coverage, where present, supplements the data shown.
Editorial review and methodology oversight provided by: Gabriel Shpitalnik, Member of Macroaxis Editorial Board
Southwest Airlines Technical Indicators
Investors following Southwest Airlines often rely on technical indicators to test whether price action is supporting continuation, exhaustion, or a possible change in direction. This is informative when the goal is to compare trend quality, momentum, and mean-reversion risk before acting.
| Cycle Indicators | ||
| Math Operators | ||
| Math Transform | ||
| Momentum Indicators | ||
| Overlap Studies | ||
| Pattern Recognition | ||
| Price Transform | ||
| Statistic Functions | ||
| Volatility Indicators | ||
| Volume Indicators |
| Risk Adjusted Performance | -0.0045 | |||
| Market Risk Adjusted Performance | -0.02 | |||
| Mean Deviation | 2.69 | |||
| Coefficient Of Variation | -7,763 | |||
| Standard Deviation | 3.83 | |||
| Variance | 14.66 | |||
| Information Ratio | -0.02 | |||
| Jensen Alpha | -0.06 | |||
| Total Risk Alpha | -0.06 | |||
| Treynor Ratio | -0.03 | |||
| Maximum Drawdown | 26.05 | |||
| Value At Risk | -5.33 | |||
| Potential Upside | 5.09 | |||
| Skewness | 1.78 | |||
| Kurtosis | 7.78 |
April 27, 2026 Daily Trend Indicators
Investors following Southwest Airlines often rely on technical indicators to test whether price action is supporting continuation, exhaustion, or a possible change in direction. This is informative when the goal is to compare trend quality, momentum, and mean-reversion risk before acting.
| Accumulation Distribution | 0.05 | ||
| Daily Balance Of Power | 0.94 | ||
| Rate Of Daily Change | 1.05 | ||
| Day Median Price | 38.65 | ||
| Day Typical Price | 38.92 | ||
| Price Action Indicator | 1.65 | ||
| Market Facilitation Index | 1.80 |