Southwest Airlines (LUV): Turbulence Deepens—Is the Worst Priced In?
Southwest Airlines (LUV) is currently facing significant pressure due to weak earnings guidance, Boeing delivery delays, and increasing operational costs, leaving Wall Street divided on its future. Despite these headwinds, some analysts see potential upside from its depressed stock levels, presenting a complex risk/reward scenario for investors. The airline's performance is tied to US consumer travel demand, its ability to manage costs and fleet issues, making it a critical test for a low-cost carrier in a high-cost environment.
Beware the business school case study: the cautionary tale of Southwest Airlines
Business school case studies often present a biased view of success, focusing on companies approved cases and overlooking their eventual decline. The author argues that like Dell and Nokia, Southwest Airlines, once an exemplar, now faces challenges and a departure from its original values, exemplified by its recent Super Bowl ad mocking its historical differentiator. The article suggests that relying solely on past case studies without understanding the transient nature of competitive advantage can be misleading.
Zacks.com featured highlights include DaVita, Ford, Centerra, Southwest Airlines and Patria Investments
This article identifies five value stocks—DaVita, Ford, Centerra Gold, Southwest Airlines, and Patria Investments Ltd.—to consider amidst Federal Reserve interest rate debates and market uncertainty. The selections are based on strong fundamentals, reasonable valuations, and high earnings yields, which are presented as a key indicator for undervalued stocks. The article highlights each company's strong projected earnings growth and Zacks Rank, recommending them as solid investment opportunities.
Alkami Technology Stock To $12?
Alkami Technology (ALKT) stock has dropped significantly by 25.6% in less than a month, falling from $22.41 to $16.67. Trefis suggests the stock could fall further, possibly to $12, citing historical data where similar sharp dips often led to negative median returns for the subsequent 12-month period. Despite these concerns, ALKT passes basic financial quality checks regarding revenue growth, profitability, and cash flow.
Southwest Airlines Staying “Optimistic” For Boeing 737 MAX 7 Debut In Early 2027
Southwest Airlines remains optimistic about the Boeing 737 MAX 7 entering service in early 2027, despite seven years of delays. The airline, which is the launch customer and holds 90% of the total order book for the MAX 7, needs these aircraft to replace its aging 737-700 fleet for improved customer experience and fuel efficiency. Certification has been delayed due to issues including engine performance, icy conditions, and a necessary redesign of the engine anti-ice system, which Boeing completed in late 2025 and is now undergoing FAA testing.
Southwest Airlines Co. stock outperforms competitors despite losses on the day
Southwest Airlines Co. (LUV) shares experienced a 4.96% drop to $52.08 on Thursday, despite the broader market also seeing declines with the S&P 500 and Dow Jones Industrial Average falling. This daily loss ended a three-day winning streak for the stock. The article notes its outperformance against competitors despite the daily loss.
Former Royal Caribbean CEO announces he's joining Norwegian Cruise Line to fix it
Former Royal Caribbean International CEO Adam Goldstein is joining forces with activist investor Elliott Investment Management to help reshape the future of Norwegian Cruise Line Holdings (NCLH). Goldstein, who previously held top positions at Royal Caribbean, aims to address NCLH's financial struggles and perceived mismanagement, drawing comparisons to Royal Caribbean's success. However, an analyst suggests Elliott's proposed solutions might be too aggressive, potentially leading to negative impacts on customer experience, similar to concerns raised about their involvement with Southwest Airlines.
Valley Wealth Reduces Sonoco Stake by Nearly 480K Shares
Valley Wealth Managers significantly reduced its stake in Sonoco Products Company by selling 479,832 shares for $19.9 million, reflecting a cautious outlook despite Sonoco's recent revenue surge. This move led to a $20.7 million quarter-over-quarter decline in the fund's position value. The firm is shifting its investment strategy towards higher-growth tech stocks and ETFs like Vanguard Russell 1000 Growth ETF and Apple, indicating a preference for broader market opportunities.
Morning Business Report: FAA orders merit-based pilot certification as Apple expands and Wendy’s closes stores
The FAA has mandated that U.S. airlines certify pilots based solely on merit, moving away from DEI initiatives, a decision supported by Sean Duffy for safety reasons. Concurrently, Apple is venturing into video podcasting to compete with existing platforms, and Wendy's plans to close approximately 350 U.S. locations while expanding its value menu to combat declining sales.
Assessing Southwest Airlines (LUV) Valuation After A Strong Multi‑Period Share Price Rally
This article analyzes Southwest Airlines (LUV) valuation after significant share price gains, noting a discrepancy between a popular narrative estimating the company as 14.3% overvalued at $54.26, and a DCF model suggesting a 59.9% discount. The narrative anticipates strong earnings growth from loyalty program optimization and partnership agreements, while the DCF model projects a fair value of $135.47 per share. The article encourages investors to examine the underlying assumptions to form their own conclusions.
La Rosa Holdings Corp. Expands with Strategic Moves in Financial Sector
La Rosa Holdings Corp. is experiencing an 11.72% stock surge due to several strategic financial moves, including eliminating $5.5 million in convertible debt, achieving 14% organic revenue growth, and reducing operating expenses by 25%. The company is also expanding into PropTech with the acquisition of land for an AI data center in Florida and has sold a majority stake in a non-core realty asset to streamline operations. These actions have significantly boosted investor confidence and positioned the company for future growth.
Southwest Airlines Sued For Abandoning Wheelchair Passenger in Airport Bathroom—Offers $150 Voucher
Southwest Airlines is facing a lawsuit from Mary Lynn Ellison, who claims the airline denied her wheelchair assistance in Atlanta, abandoned her in an airport restroom, and caused severe emotional distress. Southwest offered a $150 voucher, while Ellison alleges violations of the Air Carrier Access Act and negligence. The article questions the legal strategy given the suit's jurisdiction and the Act's lack of a private right of action.
Royal Caribbean faces protest related to Perfect Day Mexico project
Royal Caribbean is encountering protests in Mahahual, Mexico, regarding its "Perfect Day Mexico" project. Local residents are demanding that the cruise line fulfill promises for infrastructure improvements in the community that were pledged when Royal Caribbean took over the Costa Maya cruise port. This comes after a temporary halt to construction preparations by a federal judge due to environmental review requirements.
Verizon vs Johnson & Johnson: Which Dividend Hike Winner Is the Better Buy?
Verizon (VZ) and Johnson & Johnson (JNJ) recently increased their dividends, but offer different investment profiles. Verizon provides a higher current yield of 5.8% but carries substantial debt and has slower dividend growth. Johnson & Johnson has a lower 2.1% yield but boasts a much longer track record of dividend increases and stronger growth prospects due to its healthcare business.
TD Cowen upgrades ICON stock on valuation after accounting probe
TD Cowen upgraded ICON plc (ICLR) from Hold to Buy, despite lowering its price target from $183 to $120. The firm believes the stock's 33% decline due to an accounting probe overstates the impact on earnings, with the stock appearing significantly undervalued at a P/E of 12.01 and a strong free cash flow yield of 14%. While risks remain with the ongoing investigation and AI overhang, TD Cowen finds the risk-reward profile compelling.
Stocks making the biggest moves midday: General Mills, Southwest, Genuine Parts, Norwegian Cruise Line & more
General Mills tumbled after lowering its 2026 outlook, while Southwest Airlines surged following a UBS upgrade. Warner Bros. Discovery and Paramount Skydance rose after Netflix granted a waiver for deal talks. Other significant movers included Tripadvisor, Genuine Parts, Masimo, Norwegian Cruise Line Holdings, ZIM Integrated Shipping Services, Vulcan Materials, Labcorp, and Leidos, each reacting to company-specific news or analyst actions.
Atria Investments Inc Reduces Stock Position in United Airlines Holdings Inc $UAL
Atria Investments Inc. reduced its stake in United Airlines Holdings Inc. (NASDAQ:UAL) by 34.2% in the third quarter, selling 9,755 shares and leaving it with 18,728 shares valued at approximately $1.807 million. Despite insider selling by CEO J. Scott Kirby and President Brett J. Hart, analysts maintain a broadly positive outlook with an average target price of $135.97, following United's recent beat on quarterly EPS estimates and strong FY2026 guidance.
Yale Dean’s Bizarre Defense of American Airlines 'Beloved' CEO Backfires—Embarrassingly Wrong On The Facts
A Yale Dean published an article defending American Airlines CEO Robert Isom, praising his leadership and accomplishments. However, the author of this article, Gary Leff, systematically refutes each of the Dean's claims, presenting evidence that Isom's achievements are overstated, misattributed, or based on incorrect facts. Leff suggests the Dean's article is poorly researched and merely launders American Airlines' talking points.
Stocks Recover on Strength in Apple and Airline Stocks
Stock indexes experienced a mixed trading session, recovering from early losses, with Apple and airline stocks showing strength. The broader market was influenced by Apple's announcement of a product launch and new devices, while AI-related concerns and mixed economic news, alongside hawkish Fed comments, also played a role. Investors are now focusing on upcoming corporate earnings, economic data releases, and remarks from the Federal Reserve.
Southwest Airlines upgraded to 'Buy' by UBS, shares jump
UBS upgraded Southwest Airlines (LUV) to 'Buy' from 'Neutral', raising its 12-month price target to $73 from $51, citing potential earnings upside. This upgrade is based on expectations that Southwest's Extra Legroom (ELR), assigned seating, and checked bag fee initiatives could significantly boost earnings per share by fiscal 2027. The analysts project a substantial increase in EBIT from these initiatives, with further upside possible from increased corporate travel and improved macroeconomic conditions.
Southwest Airlines upgraded to 'Buy' by UBS, shares jump
UBS has upgraded Southwest Airlines (NYSE:LUV) to 'Buy' from 'Neutral', setting a 12-month price target of $73, representing a 43% upside. The upgrade is based on anticipated earnings growth from Southwest's new seating and fee initiatives, including 'Extra Legroom' and assigned seating. These changes are projected to significantly increase earnings per share by fiscal 2027.
Southwest Airlines stock hits 52-week high at 54.71 USD
Southwest Airlines stock has reached a new 52-week high of $54.71, indicating significant recovery and an 81.63% increase over the past year. This growth is attributed to strategic operational improvements and a resurgence in travel demand. Recent corporate actions include a Q4 2025 EPS beat, an upgraded rating from UBS with a higher price target, and a reduction in board size following director departures.
Southwest Airlines is Tinkering With its New Boarding Process Again As it Attempts to Solve Bin Space Dramas
Southwest Airlines is making further changes to its boarding process to address ongoing issues with overhead bin space, congestion, and passenger frustration. The airline, which recently switched from open seating to assigned seating, is adjusting boarding group assignments, particularly for extra legroom seats, in response to customer complaints. This modification aims to improve the boarding experience and manage the challenges created by passengers bringing more hand luggage due to checked bag fees.
Southwest Airlines Is Making Much-Needed Changes. Buy the Stock, This Firm Says.
UBS recommends buying Southwest Airlines stock due to recent radical changes in its baggage and seating policies, which are expected to benefit shareholders despite potential dissatisfaction from loyal customers. The firm believes these changes, introduced over the last year, are much-needed for the airline.
Looking for Growth? 3 Schwab ETFs to Consider Buying in February
This article recommends three Schwab ETFs for investors seeking growth in February. It highlights the Schwab 1000 Index ETF (SCHK) for broad market exposure and low expense ratio, the Schwab Fundamental International Large Company Index ETF (FNDF) for international diversification at an attractive valuation, and the Schwab U.S. Large-Cap Growth ETF (SCHG) for exposure to large-cap U.S. growth companies, particularly those in tech, healthcare, and financials with an AI trend focus. The author suggests a portfolio comprising all three for optimal diversification and performance.
Twist Bioscience stock hits 52-week high at $51.02
Twist Bioscience (TWST) stock reached a new 52-week high of $51.02, driven by increased investor confidence and advancements in synthetic biology. The company has shown strong returns over the past six months and year-to-date, despite analysts noting the stock appears overvalued relative to its Fair Value. Recent developments include exceeding revenue expectations in Q1 2026, a new licensing agreement, and shareholder approval of director elections and executive compensation.
Southwest Airlines jumps on UBS upgrade tied to new seating and fee initiatives
Southwest Airlines (LUV) saw its stock rise 5.5% after a bullish analyst upgrade from a major brokerage firm. The upgrade is attributed to the potential profitability of Southwest's commercial overhaul initiatives, including assigned seating, extra-legroom products, and checked-bag fees. The positive movement was further supported by a drop in crude oil prices, which could ease fuel costs for airlines.
Delta (DAL) Is Considered a Good Investment by Brokers: Is That True?
This article examines the reliability of brokerage recommendations for Delta Air Lines (DAL), noting that while brokers rate DAL highly, these recommendations often have a positive bias. It introduces the Zacks Rank as a more dependable indicator of stock performance, emphasizing its reliance on earnings estimate revisions rather than potentially biased brokerage opinions. The article concludes by suggesting caution with DAL's "Buy-equivalent" average brokerage recommendation, given its current Zacks Rank #3 (Hold).
SUNation Energy Strengthens Financial Position with Debt Elimination and Strategic Partnership
SUNation Energy has eliminated over $1 million in long-term debt, significantly improving its financial stability and cash flow. A new strategic partnership with Palmetto aims to boost residential solar growth and enhance project economics. These moves have contributed to a 21.46% surge in SUNation Energy Inc. stock, signaling increased investor confidence in the company's future.
Southwest Airlines Executes Bold Growth Strategy, Boosts Investor Confidence
Southwest Airlines shares have surged by over 19% due to positive market sentiment and operational improvements, despite recent travel disruptions and some revenue underperformance in Q4. The company's optimistic future guidance, strategic price target upgrades, and investments in technology like Starlink WiFi are bolstering investor confidence. However, potential legal investigations into fiduciary duties could introduce uncertainty.
Expeditors' Q4 Earnings Coming Up: What's in Store for the Stock?
Expeditors International of Washington (EXPD) is scheduled to report its Q4 2025 results on February 24th, with analysts forecasting a decline in both earnings and revenues compared to the previous year. While the company has a strong track record of beating earnings estimates, their model does not predict an earnings beat this quarter due to an Earnings ESP of 0.00% and a Zacks Rank #3. Despite expected strength in airfreight services and customs brokerage, challenges in ocean freight due to oversupply and weakening U.S.-China trade volumes are likely to impact performance, though cost cuts may help the bottom line.
Alnylam stock rating upgraded at Freedom Capital on AMVUTTRA growth
Freedom Capital Markets upgraded Alnylam Pharmaceuticals (NASDAQ:ALNY) stock to Buy from Hold, citing AMVUTTRA’s strong revenue growth despite lowering the price target due to near-term revenue and gross margin pressures. This upgrade reflects anticipated upside from the current share price, even with increasing competition in the TTR market. Other firms like RBC Capital and BofA Securities have also adjusted their price targets while maintaining positive ratings, highlighting Alnylam's commercial execution and future pipeline catalysts.
New APUS degrees prepare for AI, quantum and climate jobs
American Public University System (APUS) has launched new degree programs and concentrations, including a Master of Science in Computer Science and an upcoming Bachelor of Science in AI, to address the growing demand for digital and AI skills. These offerings also include specializations in Quantum Computing, Robotics and Autonomous Systems, Blockchain and Digital Currency, and Climate Change and Resilience, along with MIT-powered coursework. The initiative reflects APUS's ongoing strategy to embed AI across its curricula, preparing students for future-ready careers.
Louisiana-Pacific earnings beat by $0.03, revenue fell short of estimates
Louisiana-Pacific (NYSE: LPX) reported fourth-quarter EPS of $0.03, surpassing analyst estimates by $0.03, but its revenue of $567 million fell short of the consensus estimate of $594.64 million. The company's stock has seen a 25.41% increase in the last three months but a 17.11% decrease over the last 12 months. InvestingPro assesses Louisiana-Pacific's financial health as "good performance."
What's Going On With Southwest Airlines Stock On Tuesday?
Southwest Airlines (NYSE: LUV) shares are trading higher during premarket on Tuesday, despite a general downtrend in Nasdaq and S&P 500 futures. The stock has seen a significant 70.37% gain over the past year and is trading near its 52-week high. Analysts are looking forward to the April 22 earnings report, estimating an EPS of 52 cents and revenue of $7.16 billion, while the stock carries a Hold Rating with an average price target of $42.44.
Sonoco Products Company Reports Strong Q4 2025 Results with 29.7% Revenue Growth
Sonoco Products Company reported robust Q4 2025 results, with a 29.7% year-over-year revenue increase to $1.8 billion, surpassing market expectations. This growth was primarily fueled by the acquisition of Eviosys' Metal Packaging EMEA business and strong performance in the Consumer Packaging segment. The company also demonstrated significant profitability enhancement, with adjusted operating profit surging by 47.1% and adjusted EBITDA rising by 10.2%, leading to an optimistic future outlook including a projected 20% improvement in adjusted earnings for 2026.
Here Are Tuesday’s Top Wall Street Analyst Research Calls: Albemarle, BitGo Holdings, Chevron, Dollar General, Equifax, Shopify, Southwest Airlines, Visa, and More
This article compiles the top Wall Street analyst upgrades, downgrades, and initiations for Tuesday, February 17, 2026. It highlights research calls for companies such as Albemarle, Chevron, Shopify, Southwest Airlines, and Visa (upgrades), and ConocoPhillips, Dollar General, and Eagle Materials (downgrades). The report also discusses market reactions to a surprisingly low January inflation report, leading to speculation about potential future interest rate cuts.
GE Electric Stock Surged 50% Last Year. Here’s What Could Drive Further Gains in 2026
General Electric Company (GE) saw its stock surge 50% last year, driven by strong Q4 2025 results including a 20% revenue increase and 15% free cash flow growth. The company has issued optimistic fiscal 2026 guidance, targeting further revenue growth, increased operating profit, and substantial free cash flow. A TIKR valuation model projects GE stock could reach $430 by December 2028, representing a 36% total upside and an 11% annualized return, based on continued strength in commercial services and engine deliveries.
Why Southwest (LUV) Might be Well Poised for a Surge
Southwest Airlines (LUV) shows strong potential for growth due to significantly improving earnings outlooks and rising analyst estimates. The company currently holds a Zacks Rank #1 (Strong Buy), indicating a favorable position for investors. With current and full-year earnings estimates showing substantial increases and positive revision trends, Southwest's stock price is expected to continue its recent strong performance.
Some have welcomed Southwest’s new seat assignment and boarding system. The airline has said research showed more people would fly the carrier if it offered assigned seats. But many are in mourning for a company that once stood out but now blends in
Southwest Airlines' new seat assignment and boarding system has elicited mixed reactions. While some welcome the change, believing it improves the flying experience and attracts more customers, many long-time passengers are lamenting the loss of Southwest's unique approach that once differentiated it from other airlines. This shift has led to discussions about customer service, pricing, and whether the airline is losing its distinctive brand identity.
First Trust Exchange-Traded Fund IV First Trust Tactical High Yield ETF $HYLS Shares Bought by Envestnet Asset Management Inc.
Envestnet Asset Management Inc. increased its stake in First Trust Exchange-Traded Fund IV First Trust Tactical High Yield ETF (HYLS) by 14.7% in the third quarter, now owning 376,237 shares valued at $15.82 million. Several other institutional investors also adjusted their positions in HYLS. The ETF recently announced an increase in its monthly dividend to $0.23, representing an annualized yield of 6.7%.
‘Uno Reverse Card this policy y’all’: Southwest changes are infuriating fans
Southwest Airlines is facing backlash from passengers over changes to its seating policy. Travelers are encountering difficulties finding overhead bin space, leading to frustration and calls for the airline to reverse the new rules. The situation suggests that some frequent fliers are not pleased with the recent adjustments.
Southwest WiFi Upgrade And Board Changes Put Valuation And Risks In Focus
Southwest Airlines announced it will offer free Starlink WiFi and cabin upgrades across its fleet, alongside a reduction in its board size with two directors resigning. This initiative aims to enhance customer experience and competitiveness in the low-cost airline market, while the governance changes highlight a period of corporate restructuring. Investors should consider the impact on capital allocation, customer experience, and governance, as these moves may affect Southwest's market position and financial outlook.
Delta Air Lines, Inc. (DAL) Strengthens International Expansion
Delta Air Lines (DAL) is expanding its international fleet to meet strong demand from corporate and high-income travelers. The company recently approved a quarterly dividend and reiterated plans to purchase 31 Airbus wide-body jets, with deliveries scheduled for 2029. This move is part of Delta's strategy to modernize its fleet with more fuel-efficient aircraft and capitalize on resilient premium international demand.
Assessing American Airlines Group (AAL) Valuation As Union Protest And No Confidence Vote Target Leadership
American Airlines (AAL) is facing leadership challenges, including a union protest and a no-confidence vote against CEO Robert Isom, amidst financial pressures and weak stock performance. While some analysts view AAL as overvalued due to its balance sheet issues and recent industry warnings about falling travel demand, Simply Wall St's Discounted Cash Flow (DCF) model suggests deep undervaluation, implying a value significantly higher than its current share price. The article encourages investors to analyze different valuation perspectives and consider American Airlines' recent revenue and net income growth.
Rhumbline Advisers Sells 19,557 Shares of United Airlines Holdings Inc $UAL
Rhumbline Advisers reduced its stake in United Airlines Holdings Inc (NASDAQ:UAL) by 3.5% in the third quarter, selling 19,557 shares and bringing its total holdings to 541,823 shares valued at $52.29 million. Several other institutional investors also adjusted their positions in UAL. The company recently reported Q4 earnings of $3.10 EPS, beating estimates, and analysts currently maintain a "Moderate Buy" rating with an average target price of $135.97.
Rhumbline Advisers Reduces Holdings in Southwest Airlines Co. $LUV
Rhumbline Advisers reduced its stake in Southwest Airlines Co. (NYSE:LUV) by 3.1% during the third quarter, selling 43,577 shares and now owning 1,363,075 shares valued at $43,496,000. Other institutional investors showed mixed activity, with some increasing and others decreasing their positions in the airline. Meanwhile, analysts have issued mixed ratings on LUV, with a consensus "Hold" rating and an average price target of $46.92, despite recent positive news regarding the company's financial performance and product upgrades.
Caprock Group LLC Invests $1.79 Million in J.B. Hunt Transport Services, Inc. $JBHT
Caprock Group LLC has acquired a new stake of 12,337 shares, worth approximately $1.79 million, in J.B. Hunt Transport Services, Inc. during the third quarter. Other institutional investors have also adjusted their holdings in the transportation company, which has a market capitalization of $21.12 billion. J.B. Hunt recently announced a quarterly dividend increase to $0.45 per share and reported strong earnings, beating analyst estimates.
Revolve group CEO Mente sells $459k in shares
Michael Mente, Co-Chief Executive Officer of Revolve Group, Inc., sold 17,593 shares of Class A Common Stock for approximately $459,315 on February 11 and 12, 2026. Simultaneously, he acquired the same number of shares through the conversion of Class B Common Stock at no cost. These transactions occurred as Revolve Group expanded its physical retail presence and several investment firms raised their price targets for the company.
US airlines must certify use of merit-based hiring for pilots, FAA says
The Federal Aviation Administration (FAA) has mandated that all U.S. airlines must certify they use merit-based hiring for pilots or face a federal investigation. This directive by Transportation Secretary Sean Duffy aims to address allegations of hiring based on race and sex, following President Donald Trump's executive orders to dismantle diversity, equity, and inclusion programs. While U.S. airlines maintain safety as their top priority and comply with all regulations, pilot demographics have historically been overwhelmingly white and male.
