The stock of Southwest Airlines Co. (NYSE:LUV) is now priced at $38.81 and the shares are 1.16 points up or 3.08% higher compared to its previous closing price of $37.65. The stock had 14.083 million contracts set over the past session. LUV shares’ daily volume is compared to its average trading volume at 17.467 million shares. However, it has a float of 588 million and although its performance was 11.88% over the week, it’s one to watch. Analysts have given the LUV stock a yearly average price target of $41.5 per share. It means the stock’s upside potential is 6.93% with the LUV share price recently placing at $37.59 to $39.06. However, some brokerage firms have priced the stock below the average, including one that has called $29.

The shorts are running away from the Southwest Airlines Co. stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the LUV shares have declined. Short interest in the stock represents just 2.59% of its float, but the volume has dropped by 0.

In the last trading session, Southwest Airlines Co. (NYSE:LUV) raised by $4.12 over the week and gained $7.92 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $58.83. The stock recorded its established 52-week high on 02/14/20.

Since 05/14/20, the stock has traded to a low of $22.47 at 72.76%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.31. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.

Looking at current readings, Southwest Airlines Co.’s two-week RSI is 71.21. This suggests that the stock is oversold at the moment and that LUV shares’ price movement remains not stable. The stochastic readings are equally revealing at 83.15% meaning the LUV share price is currently in oversold territory.

The technical chart shows that the LUV stock will likely settle at between $39.38 and $39.96 per share. However, if the stock dips below $37.91, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $37.02.

Currently, the stock is trading in the green of MACD, with a reading of 1.57. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.

Analysts at Wolfe Research cut their recommendation for LUV from Outperform to Peer Perform in July 13 review. Goldman analysts upgraded their recommendation of the stock from Sell to Buy while keeping its target price at $35 to $47 in a flash note released to investors on June 29. Seaport Global Securities analysts see the stock as Buy when the analysts initiated the share price coverage on June 17, placing it at $44.

The average rating for the LUV equity is 2.26 and is currently gathering a bullish momentum. Of 19 analysts tracking Southwest Airlines Co. polled by Reuters, 8 rated LUV as a hold. The remaining 11 analysts were split evenly. However, the split wasn’t equal as a majority (11) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.

Elsewhere, the LUV stock price is 23.49X ahead of its 12-month Consensus earnings per share estimates.

Zacks Consensus Estimate forecasts that the current-quarter revenues for Southwest Airlines Co. (NYSE:LUV) will increase by about 68.65%, which will see them reach $1700 million. The company’s full-year revenues are, however, expected to diminish by about -56.75%, down from $22400 million to $9700 million. LUV’s expected adjusted earnings should drop almost -286.99% to end up at -$2.3 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -246.84% to record -$6.27/share.

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