Southwest Airlines (LUV) is a passenger airlines company in the Industrials sector. Listed on the NASDAQ, Southwest Airlines is a component of the S&P 500 index. As of 2026-06-10, the stock is trading at $41.40.
Key Metrics & Risk
Based on 5-year historical data from Yahoo Finance (daily returns, annualized using 252 trading days).
| Metric | Value |
|---|---|
| Latest Price | $41.40 |
| Latest Date | 2026-06-10 |
| Expected Return (Annualized) | 2.24% |
| Risk / Std Dev (Annualized) | 38.32% |
| Sharpe Ratio (rf=4.5%) | -0.06 |
S&P 500 Context
- Sector: Industrials
- Sub-Industry: Passenger Airlines
- Exchange: NASDAQ
- Index: S&P 500 Component
Risk/Return Profile
The stock shows an annualized expected return of 2.24% with an annualized volatility of 38.32%. The Sharpe ratio of -0.06 (assuming 4.5% risk-free rate) indicates negative risk-adjusted returns relative to the risk-free rate.
Modern Portfolio Theory Positioning
This stock is plotted on the S&P 500 Modern Portfolio Theory chart which visualizes the risk/return trade-off across all S&P 500 components. The chart uses Sharpe ratio as the color dimension, allowing quick identification of stocks with superior risk-adjusted performance.
Fundamentals
| Metric | Value |
|---|---|
| Market Cap | 20.24B |
| Enterprise Value | 23.3B |
| Trailing P/E | 27.6 |
| Forward P/E | 9.14 |
| Price to Book | 2.94 |
| Price to Sales | 0.7 |
| EV/Revenue | 0.81 |
| EV/EBITDA | 10.53 |
| Profitability | | | Profit Margin | 2.83% | | Operating Margin | 4.55% | | ROE | 10.06% | | ROA | 1.94% |
| Growth | | | Revenue Growth | 12.8% |
| Dividend | | | Dividend Yield | 174.0% | | Payout Ratio | 48.0% | | 5Y Avg Yield | 103.0% |
| Financial Health | | | Total Revenue | 28.88B | | Total Debt | 6.4B | | Total Cash | 3.33B | | Free Cash Flow | -0.37B | | Operating Cash Flow | 2.4B |
| Price & Technical | | | 52W High | $55.11$ | | 52W Low | $28.98$ | | 50-Day Avg | $40.05$ | | 200-Day Avg | $38.94$ | | Beta | 1.16 | | Shares Outstanding | 0.49B | | Float Shares | 0.48B | | Insider Holdings | 1.01% | | Institutional Holdings | 89.48% | | Short Ratio | 4.38 | | Short % of Float | 7.92% |
| Analyst Targets | | | Target High | $60.0$ | | Target Low | $30.0$ | | Target Mean | $45.64$ | | Target Median | $45.0$ | | # of Analysts | 23 | | Recommendation | hold |
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research or consult a qualified financial advisor before making investment decisions.