“Every Stock I'm Buying Right Now Before 2026 Ends (7 Unthinkable Prices)”
Buy LUV; thesis relies on margin recovery to pre-Covid levels (10-15%) and share buybacks, targeting ~28% return based on average valuation assumptions.
Okay, next, Southwest Airlines. Now, airlines are making people feel anxious. Guys, it's making me anxious . Even Buffett said it's a tough business. But I think Southwest is different.
Prior to Covid, Southwest had not recorded a single year of losses, and had been operating with profit margins of 10 to 15% in recent years with complete regularity. This is almost unprecedented in an industry where competitors are constantly going bankrupt.
For me, this has always been a bet on the recovery of profit margins .