Put a Little LUV in Your Portfolio

I've got to admit I was more than a little surprised to see Southwest Airlines (LUV Quote) hit a new 52-week low in early May, especially as the markets in general headed for higher altitude. Heck, every Southwest flight I boarded in April was packed to the gills.

So I decided to look at the numbers, and yes, Southwest is at the low end of a six-year trading range despite healthy financials all along the way.

If I've ever known an example of an excellent performer in a ho-hum industry, it is Southwest. And that's the sort of excellence The Millionaire Zone investors look for.

Indeed, three analyst downgrades to neutral have followed a steady string of upgrades. There are doubts about whether the company can meet aggressive 15% earnings growth targets for the year, amid fears of soaring fuel prices and a consumer slump.

But has Southwest become oversold as investors climb on the analyst bandwagon? Company management believes so -- it just announced a $500 million buyback.

In true value-investing form, let's fasten our seat belts, put our tray tables in an upright and locked position and take a closer look.

Click here for the video version of this story from Jennifer Openshaw.