Southwest Airlines Stock On Fire: Up 17% With 8-Day Winning Streak
Southwest Airlines (LUV) stock hit day 8 of a continuous streak of days with gains, with cumulative gains over this period amounting to a 17% return. The company has gained about $2.4 Bil in value over the last 8 days, with its current market capitalization at about $17 Bil. The stock remains 23.3% above its value at the end of 2024. This compares with year-to-date returns of 17.3% for the S&P 500.
Southwest Airlines’ recent streak is fueled by optimism for its strategic overhaul, including a potential move to first-class seating and new international partnerships. Bullish analyst upgrades, like Morgan Stanley’s $48 price target, underscore confidence in the airline’s evolving, more revenue-focused model, overshadowing earlier profit forecast adjustments.
What is the point? Momentum often precedes conviction. A multi-day win streak can signal growing investor confidence or spark follow-on buying. Tracking such trends can help you ride the strength, or prepare for a well-timed entry if momentum fades. Our take: There are several things to fear in LUV stock given its overall Weak operating performance and financial condition. In addition, keeping in mind its High valuation, we think that the stock is Unattractive (see Buy or Sell LUV).
For quick background, LUV provides scheduled passenger air transportation services across the U.S. and nearby international markets, operating a fleet of 728 Boeing 737 aircraft serving 121 destinations.
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- Is The 21% Drop In LUV Stock, A Buying Opportunity?
- After A 21% Slide, Is LUV Stock Worth A Look?
- LUV Stock Down -18% after 5-Day Loss Streak
- LUV Lost 12% In A Week. Past Slides Turned Into Crashes.
- S&P 500 Movers | Winners: UAL, DAL, LUV | Losers: AXON, PTC, FTNT
Comparing LUV Stock Returns With The S&P 500
The following table summarizes the return for LUV stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | LUV | S&P 500 |
|---|---|---|
| 1D | 2.3% | 0.2% |
| 8D (Current Streak) | 17.2% | 1.3% |
| 1M (21D) | 27.4% | 0.8% |
| 3M (63D) | 28.7% | 4.8% |
| YTD 2025 | 23.3% | 17.3% |
| 2024 | 19.1% | 23.3% |
| 2023 | -11.8% | 24.2% |
| 2022 | -21.4% | -19.4% |
However, big gains can follow sharp reversals – but how has LUV behaved after prior drops? See LUV Dip Buyer Analysis to learn more.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 116 S&P constituents with 3 days or more of consecutive gains and 20 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 73 | 5 |
| 4D | 12 | 8 |
| 5D | 9 | 3 |
| 6D | 1 | 1 |
| 7D or more | 21 | 3 |
| Total >=3 D | 116 | 20 |
Key Financials for Southwest Airlines (LUV)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $26.1 Bil | $27.5 Bil |
| Operating Income | $224.0 Mil | $321.0 Mil |
| Net Income | $465.0 Mil | $465.0 Mil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $7.2 Bil | $6.9 Bil |
| Operating Income | $225.0 Mil | $35.0 Mil |
| Net Income | $213.0 Mil | $54.0 Mil |
While LUV stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.