Southwest Airlines Co (NYSE:LUV) is one of the most undervalued stocks to buy and hold for 5 years. On January 29, Southwest Airlines Co (NYSE:LUV) reported an EPS of $0.58 for the fourth quarter of 2025, slightly above its $0.57 guidance for the period, as well as $7.4 billion in revenues, slightly missing its $7.5 billion target. Looking ahead, Southwest Airlines Co (NYSE:LUV) is bullish on 2026, projecting significantly higher earnings, with full-year adjusted EPS guidance of at least $4, which is well a ...

Alaska Air Group, Inc. (NYSE:ALK) is one of the 10 most undervalued industrial stocks to buy according to analysts. Alaska Air Group (NYSE:ALK) stock received a boost on January 20 when UBS analyst Atul Maheswari maintained his Buy rating and $77 price target. Prior to that, on January 9, Susquehanna increased its price target for the stock from $52 to $70 while maintaining a Buy rating on the shares. In a research note to investors, Susquehanna highlighted a constructive fundamental outlook for the airlin ...

Core Viewpoint - Southwest Airlines Co. (LUV) is a significant player in the airline industry, known for its operational efficiency and customer-friendly policies, with a market capitalization of $21.1 billion [1][2]. Company Overview - LUV operates a point-to-point route network and is recognized for its low fares, no-change-fee policy, and high customer satisfaction [2]. - The company serves both leisure and business travelers across the U.S. and select international destinations, emphasizing reliability and cost discipline [2]. Stock Performance - LUV shares reached a 52-week high of $42, with a notable increase of 31.7% over the past three months, significantly outperforming the State Street Industrial Select Sector SPDR ETF (XLI), which rose by 4.1% in the same period [3]. - Over the past 52 weeks, LUV has rallied 25.5%, surpassing XLI's 14.5% increase, and on a year-to-date basis, LUV is up 24% compared to XLI's 19.7% return [4]. Financial Results - On October 22, LUV reported mixed Q3 results, with overall revenue increasing by 1.1% year-over-year to $6.9 billion, although it slightly missed consensus estimates [5]. - The adjusted EPS of $0.11 exceeded Wall Street expectations of $0.01, indicating potential for margin expansion in the fourth quarter [5]. Competitive Position - LUV's performance is notably stronger compared to its rival, JetBlue Airways Corporation (JBLU), which has seen a decline of 30.6% over the past 52 weeks and 36.1% year-to-date [6].

Group 1 - Southwest Airlines Co. is considered one of the cheap stocks to buy for the next 5 years, with Susquehanna raising the price target to $35 from $30 while maintaining a Neutral rating [1] - The company is undergoing a transformational journey despite facing headwinds, as noted in its Q2 earnings report [1] - For Q2, the company's overall revenue decreased by 1.50% year-over-year to $7.24 billion, with RASM down 3.1% and CASM-X up 4.7% [2][3] Group 2 - For Q3, Southwest Airlines anticipates RASM guidance to range from a decrease of 2% to an increase of 2% year-over-year, while CASM-X guidance is expected to rise by 3.5% to 5.5% [3] - Fuel costs are estimated to be between $2.40 and $2.50 per gallon for the upcoming quarter [3]

Core Insights - Southwest Airlines Co. is a significant player in the airline industry with a market cap of $17.1 billion and over 73,000 employees, providing scheduled air transportation services in the U.S. and near-international markets [1][2] Financial Performance - The stock reached a two-year high of $37.96 on July 17 but is currently trading 14.3% below that peak, with a 4.4% gain over the past three months, underperforming the Dow Jones Industrial Average's 9.8% increase during the same period [3] - Year-to-date, the stock has dipped 3.3%, while it has increased 12.4% over the past 52 weeks, underperforming the Dow's 8.9% uptick in 2025 but outperforming the Dow's 10.2% returns over the past year [4] - Following disappointing Q2 results released on July 23, the stock plummeted 11.2% in one trading session, with passenger revenues dropping 1.3% year-over-year to $6.6 billion and total revenues falling 1.5% year-over-year to $7.2 billion, missing Street expectations [5] Comparative Analysis - Compared to United Airlines Holdings, Inc., which saw a 9.5% gain in 2025 and a 102.2% surge over the past 52 weeks, Southwest's performance appears significantly weaker [6] - Among 21 analysts covering the stock, the consensus rating is a "Hold," with the stock trading slightly above the mean price target of $32.01 [6]

Group 1: Company Performance - Arkema (ARKAY) has seen a downward revision of its current year earnings estimate by approximately 17.2% over the last 60 days [1] - American Airlines (AAL) has experienced a 9.4% downward revision in its current year earnings estimate over the past 60 days [2] - Americold Realty Trust (COLD) has had its current year earnings estimate revised downward by 5.9% in the last 60 days [3] Group 2: Industry Insights - Arkema operates in the manufacturing and marketing of vinyl products, industrial chemicals, and performance products [1] - American Airlines provides scheduled air transportation services for passengers and cargo across various regions including the United States and Latin America [2] - Americold Realty Trust is a real estate investment trust focused on temperature-controlled warehouses in multiple countries [3]