Is LUV Worth Buying in 2026?

Southwest Airlines Co.

STOCK AIR TRANSPORTATION, SCHEDULED Updated 2026-08-23

Here’s whether Southwest Airlines Co. (LUV) is worth buying in 2026 — based on weekly-updated price trend, RSI momentum, and return vs. the S&P 500. Our current read: Caution.

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Caution

Positives: 50-day MA is rising (+0.49% over 10 days); strong 1-year return of +30.0%. Concerns: trading below the 200-day MA (long-term downtrend); below the 50-day MA (medium-term momentum negative); RSI 23 — oversold. Currently 26.7% off its 52-week high. Score: -2/7.

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LUV is trading below its 200-day MA ($42.70) — a key warning sign the longer-term trend is under pressure. An RSI of 23.4 has dropped into oversold territory, which has historically preceded short-term bounces. The 1-year return of +30.0% compares to +20.5% for SPY (beat the market by 9.5%). The current 26.7% drawdown from the 52-week high reflects elevated risk for momentum-based strategies.

$10,000 invested 1 year ago → $12,996 today
vs. S&P 500 (SPY) — same period beat market by 9.5%

1-Year Price Chart

Daily candles
MA-50 MA-200 Up Down

Signal Check

Above 200-day MA ($42.70)
Above 50-day MA ($47.10)
!RSI(14) neutral zone (30–70) — currently 23.4
Positive return (+30.0%)
!Within 10% of period high (−26.7%)
Period Range $40.38
$29.26 $55.11
RSI (14) 23.4
0 · OversoldOverbought · 100

Key Metrics

Price$40.38
Period Return+30.0%
Period High$55.11
Period Low$29.26
Drawdown−26.7%
MA-50$47.10
MA-200$42.70
RSI (14)23.4
Avg Volume (30d)5.1M
vs. SPYbeat by 9.5%
Return Rank#341 of 999

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