"The weaker dollar is good for LUV as staycations will be on the rise." Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance Editor's Note: Artificial intelligence is giving Wall Street traders a massive advantage. Which is why next week, we're showing you one of the most powerful AI tools we've ever seen. Trading pioneer Jon Najarian is launching his new AI Trade Monster, a trading system that detects 10x profit setups while also showing you the ideal time to enter and exit a trade. This is the trading tool everyone dreamed about since the beginning of AI. Click here to see how AI Trade Monster works. - Stephen Prior, Publisher Last week, I wrote about the weakening U.S. dollar and the fundamental shift in how the world views American assets. But while a weaker currency might make traders more cautious, the truth is there are several companies that could benefit from a less valuable dollar. One of those companies on my watchlist is Southwest Airlines (LUV). Weakened dollar or not - people still like to travel. But they might not be able to afford long trips to Europe or Australia. (Not to mention... a weaker dollar lowers your purchasing power overseas.) That's where LUV comes in. Unlike most major U.S. airliners, LUV is almost entirely U.S. focused. So no passports or currency drama. Making it perfect for long weekend trips and short stays. Second, LUV has a no-charge fee model and free bags. Meaning it's easier on travelers' wallets. Analysts are also bullish… Back in early January, JPMorgan upgraded Southwest (LUV) to overweight from underweight with a price target of $60. Morgan Stanley also recently raised the firm's price target on Southwest to $50 from $48 and kept an overweight rating on the shares. I've been ahead of this staycation trend in The War Room for almost a year. Last April, I opened a spread trade on LUV and closed for a 50% winner in 29 days. While that trade was in 2025, I believe a continued weakening dollar means the staycation trend will continue in 2026. So I believe this is just the start for LUV. |