C61/100

Is Southwest Airlines (LUV) a risky stock?

Sector: Industrials Price: $48.36 Composite: 61/100

As of July 21, 2026, Clavix grades Southwest Airlines (LUV) C for risk, a composite score of 61 out of 100 on an A+ to F scale, which puts LUV in the "average" band. The grade is a risk read for educational purposes, not a buy or sell recommendation.

Grade as of July 21, 2026. Clavix regrades every trading day.

The five risk dimensions behind LUV's grade

Each Clavix grade is a composite of five independent reads. Higher is safer. Here is how LUV scores on each, as of July 21, 2026.

Financial healthbalance sheet, margins, cash flow
62
News sentimentscored, sourced recent coverage
58
Macro exposuresensitivity to rates, dollar, oil
53
Sector resiliencestrength vs the broad market
65
Price stabilitydrawdown and volatility
41

What's moving LUV's risk right now

Company-specific signals Clavix flags behind LUV's current grade, drawn from recent news and filings as of July 21, 2026.

Earnings & results · mixed signal

Southwest reports Q2 results next week. Strong demand and pricing should help revenue, but higher labor costs could squeeze margins. Wall Street expects earnings growth, though some warn of a possible miss.

Demand · supporting the grade

Catalyst Capital Advisors and Gerald Baker Financial Group bought new positions in Southwest in Q1, while Calamos Advisors raised its stake by 30.7%, per recent 13F filings.

Demand · supporting the grade

The new seasonal flight adds leisure-focused capacity for peak travel demand. It lets Southwest earn extra revenue and test demand without a long-term commitment.

What a C grade means

On the Clavix A+ to F scale, LUV's composite of 61 falls in the C band (50–64), read as "average." The scale is fixed, so the meaning never moves.

A+AA-B+BB-C+CC-D+DD-F
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This page is generated from Clavix's own risk model and is for educational purposes only. It is not investment advice or a recommendation to buy or sell LUV or any security. Grades are risk indicators, not predictions of return. Data may be delayed.