Southwest Airlines Co. (NYSE:LUV) is considered a cheap stock to buy for the next 5 years. Susquehanna raised Southwest’s price target to $35 from $30, maintaining a Neutral rating as part of a Q3 2025 earnings preview. Despite challenges in the initial rollout of basic economy products, Southwest Airlines has been undergoing a transformational journey.

For Q2, Southwest Airlines reported a 3.1% decrease in RASM and a 4.7% increase in CASM-X. Overall revenue was down 1.50% year-over-year to $7.24 billion. As part of its Q3 guidance, Southwest anticipates RASM to range from a 2% decrease to a 2% increase year-over-year, with CASM-X expected to be up 3.5% to 5.5%.

Southwest Airlines Co. (NYSE:LUV) is a passenger airline company that provides scheduled air transportation services in the US and near-international markets. While LUV shows potential as an investment, there are AI stocks offering greater upside potential. For an undervalued AI stock benefiting from Trump-era tariffs, check out a free report on the best short-term AI stock.

Disclosure: None. This article was originally published on Insider Monkey.

Read more at Yahoo Finance: Susquehanna Lifts Southwest (LUV) PT to $35 Amid Q3 2025 Earnings Preview