LUV
Southwest Airlines Co. Industrials - Airlines Investor Relations →
Southwest Airlines Co. (LUV) closed at $54.26 as of 2026-02-03, trading 72.0% above its 200-week moving average of $31.55. The stock moved further from the line this week, up from 57.7% last week. With a 14-week RSI of 88, LUV is in overbought territory.
Over the past 2357 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 $28.1 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 3.5x book value.
Over the past 33.2 years, a hypothetical investment of $100 in LUV would have grown to $1561, compared to $2849 for the S&P 500. LUV has returned 8.6% annualized vs 10.6% for the index, underperforming the broader market over this period.
Free cash flow has been declining at a -100% compound annual rate. A deteriorating cash flow trend warrants extra scrutiny — the stock may be cheap for a reason.
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.
Historical Touches
LUV has crossed below its 200-week MA 43 times with an average 1-year return of +3.6% after recovery.
| Crossed Below | Recovered | Weeks | Max Depth | 1-Year Return | Return Since Touch |
|---|---|---|---|---|---|
| Sep 1981 | Sep 1981 | 1 | 1.6% | +93.2% | +15684.7% |
| Jul 1984 | Jul 1984 | 3 | 12.7% | +65.8% | +8213.9% |
| Aug 1984 | Oct 1984 | 8 | 11.0% | +48.9% | +7995.1% |
| Nov 1984 | Nov 1984 | 1 | 0.7% | +33.4% | +7774.0% |
| Feb 1986 | Oct 1986 | 36 | 19.0% | +8.4% | +6719.0% |
| Oct 1986 | Feb 1987 | 14 | 16.3% | -37.4% | +6364.1% |
| Mar 1987 | Jan 1989 | 97 | 44.1% | -26.3% | +6287.1% |
| Jan 1990 | Jan 1990 | 1 | 1.0% | +61.0% | +7153.6% |
| Sep 1990 | Sep 1990 | 1 | 0.8% | +75.8% | +6950.2% |
| Dec 1994 | Apr 1995 | 19 | 21.6% | +49.2% | +1829.0% |
| Oct 1995 | Nov 1995 | 6 | 13.9% | -0.4% | +1321.0% |
| Dec 1995 | Jan 1996 | 6 | 3.7% | -3.6% | +1290.1% |
| Jul 1996 | Apr 1997 | 41 | 21.6% | +4.9% | +1198.8% |
| May 1997 | Jul 1997 | 5 | 4.3% | +55.5% | +1197.1% |
| Sep 2001 | Sep 2001 | 1 | 1.1% | +7.1% | +389.9% |
| Jul 2002 | Nov 2002 | 19 | 23.0% | +18.9% | +326.3% |
| Dec 2002 | Apr 2003 | 19 | 22.5% | +3.8% | +319.0% |
| May 2003 | May 2003 | 2 | 1.1% | -7.6% | +310.7% |
| Dec 2003 | Oct 2005 | 98 | 20.6% | +0.3% | +301.6% |
| Jun 2006 | Jun 2006 | 1 | 0.3% | -4.7% | +315.0% |
| Oct 2006 | Nov 2006 | 3 | 3.8% | -8.2% | +319.4% |
| Dec 2006 | Jan 2007 | 2 | 2.3% | -15.7% | +314.3% |
| Jan 2007 | Feb 2007 | 3 | 4.1% | -22.1% | +307.9% |
| Feb 2007 | Jul 2007 | 19 | 8.2% | -15.4% | +312.2% |
| Aug 2007 | Jul 2008 | 49 | 23.3% | +0.9% | +318.7% |
| Aug 2008 | Aug 2008 | 1 | 1.0% | -42.7% | +326.3% |
| Sep 2008 | Feb 2010 | 75 | 63.7% | -33.6% | +327.6% |
| May 2010 | Jul 2010 | 10 | 11.5% | +2.6% | +430.7% |
| Aug 2010 | Sep 2010 | 5 | 8.1% | -24.9% | +454.3% |
| Apr 2011 | Apr 2011 | 2 | 0.3% | -30.7% | +443.6% |
| May 2011 | Jun 2011 | 3 | 4.1% | -23.2% | +459.1% |
| Jul 2011 | Dec 2012 | 75 | 33.2% | -16.1% | +468.4% |
| Oct 2018 | Oct 2018 | 1 | 0.2% | +21.9% | +24.2% |
| Dec 2018 | Jan 2019 | 3 | 8.0% | +26.1% | +33.7% |
| Mar 2019 | Mar 2019 | 1 | 0.3% | -29.7% | +21.5% |
| May 2019 | Jun 2019 | 1 | 3.9% | -28.6% | +23.8% |
| Jul 2019 | Aug 2019 | 2 | 2.5% | -34.8% | +20.4% |
| Feb 2020 | Feb 2021 | 49 | 49.1% | +24.1% | +24.7% |
| Jul 2021 | Sep 2021 | 10 | 4.3% | -17.6% | +20.2% |
| Oct 2021 | Jul 2025 | 194 | 44.7% | -34.3% | +17.2% |
| Jul 2025 | Aug 2025 | 4 | 10.6% | N/A | +68.5% |
| Sep 2025 | Sep 2025 | 2 | 1.7% | N/A | +72.8% |
| Oct 2025 | Nov 2025 | 1 | 4.0% | N/A | +79.1% |
| Average | 21 | — | +3.6% | — |
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 Friday close, 2026-02-03