Schaeffer's Top Stock Picks for '25

Southwest Airlines Stock Remains a Sector Underperformer

More than 17,000 U.S. flights were canceled among airlines this weekend

Digital Content Manager
Dec 27, 2022 at 11:31 AM
facebook X logo linkedin


Southwest Airlines Co (NYSE:LUV) is getting caught up in this weekend's winter storm drama, with reports coming out that the company is expected to see the biggest decline in available seat miles out of any of the major U.S. airlines due to thousands of flight cancelations during the holiday weekend. While most other travel sectors are brushing off the spate of delays, shares of Southwest are sinking, last seen down 4.1% at $34.63, after the Transportation Department expressed concern over the flight name's "disproportionate" number of delays and cancelations. 

Earlier this month, we pointed out the 20-day moving average as a possible point of contention on the charts. Since then, the security has slipped even further away from this former support level, with additional pressure forming at the 10-day moving average. It briefly looked like the $35 mark might contain some of the stock's downside, though this level has also been breached during during today's trading. 

Despite a more than 15% year-to-date deficit, analysts remain bullish on LUV, which could invite some downward rating and price adjustments. Of the 16 in coverage, all but five call the stock a "strong buy." Plus, the 12-month consensus price target of $49.31 is a 36.6% premium to Friday's close. 

 

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?