13 Cheap Stocks to Buy For the Next 5 Years

5. Southwest Airlines Co. (NYSE:LUV)

Forward P/E Ratio as of October 7: 13.46

EPS Forward Long Term Growth (3-5 Year CAGR): 54.98%

Number of Hedge Fund Holders: 38

Southwest Airlines Co. (NYSE:LUV) is one of the cheap stocks to buy for the next 5 years. On October 3, Susquehanna raised the firm’s price target on Southwest to $35 from $30, while maintaining a Neutral rating on the shares as part of a Q3 2025 earnings preview for the airlines group. Southwest Airlines has also been undergoing a transformational journey despite headwinds, as highlighted earlier in its Q2 earnings report as well.

However, the initial rollout of basic economy products presented challenges with lower conversion rates. For Q2, RASM (Revenue per Available Seat Mile) was down 3.1% year-over-year, while CASM-X (Cost per Available Seat Mile excluding fuel and oil expense) was up 4.7%. The company’s overall revenue was down 1.50% year-over-year to $7.24 billion.

For Q3, the company anticipates RASM Guidance to range from a decrease of 2% to an increase of 2% year-over-year. CASM-X Guidance is expected to be up 3.5% to 5.5%, with fuel costs estimated to be between $2.40 and $2.50 per gallon.

Southwest Airlines Co. (NYSE:LUV) is a passenger airline company that provides scheduled air transportation services in the US and near-international markets.