Dallas, Texas-based Southwest Airlines Co. (LUV) is a passenger airline company, providing scheduled air transportation services in the U.S. and near-international markets. With a market cap of $17.1 billion, Southwest employs over 73,000 people and its operations span various U.S. states and 10 other nations.
Companies worth $10 billion or more are generally referred to as "large-cap stocks." Southwest fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the airline industry.
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Southwest touched its two-year high of $37.96 on Jul. 17 and is currently trading 14.3% below that peak. Meanwhile, the stock has gained 4.4% over the past three months, lagging behind the Dow Jones Industrial Average's ($DOWI) 9.8% surge during the same time frame.
Southwest's performance has remained mixed over the longer term. LUV stock has dipped 3.3% on a YTD basis and soared 12.4% over the past 52 weeks, underperforming the Dow's 8.9% uptick in 2025, while outpacing the Dow's 10.2% returns over the past year.
The stock has traded along its 200-day moving average in recent months and mostly below its 50-day moving average since late July, with some fluctuations, underscoring its recent downturn.
Southwest Airlines' stock prices plummeted 11.2% in a single trading session following the release of its disappointing Q2 results on Jul. 23 and maintained a downward trajectory for the next four trading sessions. The company's passenger revenues dropped 1.3% year-over-year to $6.6 billion, along with notable declines in freight and other revenues. Overall, the airlines reported a topline of $7.2 billion, down 1.5% year-over-year, falling 70 bps below the Street expectations. Moreover, Southwest's adjusted EPS tanked by 25.9% year-over-year to $0.43, missing the consensus estimates by 15.7%.
When compared to its peer, Southwest's performance appears abysmal compared to United Airlines Holdings, Inc.'s (UAL) 9.5% gains in 2025 and 102.2% surge over the past 52 weeks.
Among the 21 analysts covering the LUV stock, the consensus rating is a "Hold." As of writing, the stock is trading slightly above its mean price target of $32.01.