LUV Claws Higher Amid Analyst Praise

The equity is eyeing its fifth-straight win

Deputy Editor
Mar 23, 2021 at 10:19 AM
facebook twitter linkedin


The shares of Southwest Airlines Co (NYSE:LUV) are inching higher this morning, following an upgrade from Argus. The analyst upped its rating on Southwest Airlines to "buy" from "hold," calling it "one of the best low-cost carriers," and citing pre-pandemic earnings stability and strong management. LUV is up 0.1% at $59.50 at last check. 

LUV has rallied since early this year, bouncing off the 80-day moving average in late January. The stock is now up over 27.6% in 2021, with additional support at the 20-day moving average guiding shares higher. 

Coming into today, the analyst sentiment surrounding LUV was resoundingly optimistic, with all but one of the 15 analysts in coverage calling the stock a "buy" or better. The 12-month consensus price target of  $60.89, meanwhile, sits at a 2.2% premium to last night's close. 

Now looks like a great time to get in on LUV's next move with options. The equity's Schaeffer's Volatility Index (SVI) of 36% stands higher than all but one percent of readings from the past year. This implies options traders are pricing in very low volatility expectations for the equity right now. 

Celebrate 40 Years of Schaeffer's With 4 FREE Stock Picks!


 




 
Special Offers from Schaeffer's Trading Partners