LUV

Southwest Airlines Co. Industrials - Airlines Investor Relations →

NO
25.0% ABOVE
↓ Approaching Was 27.1% last week
-15% -10% -5% 0% 5% 10% 15%+
Buy Threshold $31.52
14-Week RSI 47
Rel. Volume (14w) This week's trading vs. the 14-week average 1.2x
Buyers vs. Sellers (14w) Are up-weeks or down-weeks getting more volume? 1.18

Southwest Airlines Co. (LUV) closed at $39.41 as of 2026-03-20, trading 25.0% above its 200-week moving average of $31.52. The stock is currently moving closer to the line, down from 27.1% last week. The 14-week RSI sits at 47, indicating neutral momentum.

Trading volume is running at 1.2x of its 14-week average, which is in the normal range. The balance between buying and selling volume (1.18 ratio) is neutral — neither side is clearly dominating.

Over the past 2363 weeks of data, LUV has crossed below its 200-week moving average 43 times. On average, these episodes lasted 21 weeks. Historically, investors who bought LUV at the start of these episodes saw an average one-year return of +3.6%.

With a market cap of $20.4 billion, LUV is a large-cap stock. Free cash flow yield is currently negative, meaning the company is burning cash. Return on equity stands at 4.8%. The stock trades at 2.5x book value.

The company has been aggressively buying back shares, reducing its share count by 13.2% over the past three years.

Over the past 33.2 years, a hypothetical investment of $100 in LUV would have grown to $1138, compared to $2683 for the S&P 500. LUV has returned 7.6% annualized vs 10.4% for the index, underperforming the broader market over this period.

Free cash flow has been declining. A deteriorating cash flow trend warrants extra scrutiny — the stock may be cheap for a reason.

Business Health

Annual financials — how the underlying business has performed over the past several years.

Cash Flow Free cash flow & net income ($M)

Revenue Annual revenue ($M) — business growth proxy

Total Debt Balance sheet debt ($M)

ROIC Return on invested capital (%)

FCF Yield Free cash flow / market cap (%) — Yartseva signal

Gross Margin Pricing power & competitive moat (%)

Shares Outstanding Buybacks vs dilution (millions)

Growth of $100: LUV vs S&P 500

Monthly data normalized to $100 at start. Vertical dashed lines mark 200-week MA touches.

What Happens After LUV Crosses Below the Line?

Across 34 historical episodes, buying LUV when it crossed below its 200-week moving average produced an average return of -6.6% after 12 months (median -9.0%), compared to +11.0% for the S&P 500 over the same periods. 35% of those episodes were profitable after one year. After 24 months, the average return was +6.3% vs +22.8% for the index.

Each line shows $100 invested at the moment LUV crossed below its 200-week MA. Bold blue = stock average. Gray dashed = S&P 500 average over same periods.

Advertisement

Historical Touches

LUV has crossed below its 200-week MA 43 times with an average 1-year return of +3.6% after recovery.

Crossed BelowRecoveredWeeksMax Depth1-Year ReturnReturn Since Touch
Sep 1981Sep 198111.6%+93.2%+11414.2%
Jul 1984Jul 1984312.7%+65.8%+5964.6%
Aug 1984Oct 1984811.0%+48.9%+5805.0%
Nov 1984Nov 198410.7%+33.4%+5643.7%
Feb 1986Oct 19863619.0%+8.4%+4874.1%
Oct 1986Feb 19871416.3%-37.4%+4615.3%
Mar 1987Jan 19899744.1%-26.3%+4559.1%
Jan 1990Jan 199011.0%+61.0%+5191.2%
Sep 1990Sep 199010.8%+75.8%+5042.8%
Dec 1994Apr 19951921.6%+49.2%+1307.1%
Oct 1995Nov 1995613.9%-0.4%+936.6%
Dec 1995Jan 199663.7%-3.6%+914.0%
Jul 1996Apr 19974121.6%+4.9%+847.4%
May 1997Jul 199754.3%+55.5%+846.2%
Sep 2001Sep 200111.1%+7.1%+257.4%
Jul 2002Nov 20021923.0%+18.9%+210.9%
Dec 2002Apr 20031922.5%+3.8%+205.6%
May 2003May 200321.1%-7.6%+199.6%
Dec 2003Oct 20059820.6%+0.3%+193.0%
Jun 2006Jun 200610.3%-4.7%+202.7%
Oct 2006Nov 200633.8%-8.2%+205.9%
Dec 2006Jan 200722.3%-15.7%+202.2%
Jan 2007Feb 200734.1%-22.1%+197.6%
Feb 2007Jul 2007198.2%-15.4%+200.7%
Aug 2007Jul 20084923.3%+0.9%+205.4%
Aug 2008Aug 200811.0%-42.7%+211.0%
Sep 2008Feb 20107563.7%-33.6%+211.9%
May 2010Jul 20101011.5%+2.6%+287.1%
Aug 2010Sep 201058.1%-24.9%+304.4%
Apr 2011Apr 201120.3%-30.7%+296.5%
May 2011Jun 201134.1%-23.2%+307.8%
Jul 2011Dec 20127533.2%-16.1%+314.7%
Oct 2018Oct 201810.2%+21.9%-9.4%
Dec 2018Jan 201938.0%+26.1%-2.5%
Mar 2019Mar 201910.3%-29.7%-11.4%
May 2019Jun 201913.9%-28.6%-9.7%
Jul 2019Aug 201922.5%-34.8%-12.2%
Feb 2020Feb 20214949.1%+24.1%-9.0%
Jul 2021Sep 2021104.3%-17.6%-12.3%
Oct 2021Jul 202519444.7%-34.3%-14.5%
Jul 2025Aug 2025410.6%N/A+22.9%
Sep 2025Sep 202521.7%N/A+26.1%
Oct 2025Nov 202514.0%N/A+30.6%
Average21+3.6%

Frequently Asked Questions

Is LUV below its 200-week moving average?

No. Southwest Airlines Co. (LUV) is currently 25.0% above its 200-week moving average of $31.52. It would need to fall to $31.52 to cross below the line.

What is LUV's 200-week moving average price?

Southwest Airlines Co.'s 200-week moving average is $31.52 as of 2026-03-20. This is the average weekly closing price over roughly the last 4 years, and it acts as a long-term trend line. When a stock drops below this level, it can signal that the price has fallen far enough from the long-term trend to attract value-oriented investors.

What happens when LUV drops below its 200-week moving average?

LUV has crossed below its 200-week moving average 43 times in our data. On average, buying at that moment produced a one-year return of +3.6%. These dips have historically been decent entry points. These episodes lasted 21 weeks on average.

Is LUV a good value right now?

Here's what our data says about LUV as of 2026-03-20: The stock is above its 200-week moving average, so it doesn't currently meet our primary signal. The 14-week RSI is 47. Free cash flow is currently negative. Return on equity is 4.8%. Price-to-book is 2.5x. This is not a buy or sell recommendation — always do your own research.

How does LUV compare to the S&P 500?

Over the past 33.2 years, $100 invested in LUV would have grown to $1138, compared to $2683 for the S&P 500. That's 7.6% annualized vs 10.4% for the index. LUV has underperformed the broader market over this period.

Does LUV pay a dividend?

Yes. Southwest Airlines Co. currently pays a dividend yield of 183.00%.

Not financial advice. This is an educational tool. Past performance does not guarantee future results. Do your own research before making investment decisions.

Data as of week of 2026-03-20