We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SkyWest (SKYW) Shares Down 34.8% Since March: Here's Why
Read MoreHide Full Article
SkyWest, Inc. (SKYW - Free Report) shares have shed 34.8% of value since March compared with the industry’s 25.9% decline.
Reasons for Dismal Performance
Like other airlines, SkyWest is reeling under the effects of the coronavirus pandemic. The demand scenario, which started deteriorating in late January, began to worsen in mid-March.
Evidently, total revenues during the first half of 2020 plunged 26.4% year over year. The COVID-19 pandemic caused a significant reduction in the number of scheduled flights, thereby hurting the top line.
Due to the coronavirus led plunge in air travel demand, the carrier reported wider-than-expected loss in each of the two quarters of 2020. With traffic decline outpacing the capacity reduction, passenger load factor (percentage of seats filled by passengers) tanked 23.4 percentage points to 58% during the first half of 2020.
Unfavorable Estimate Revisions
Thanks to disappearing demand and the economic uncertainty ahead, the Zacks Consensus Estimate for current-quarter bottom line has deterioated to a loss of 7 cents from earnings of 40 cents in the past 60 days. Similarly, the Zacks Consensus Estimate for current-year bottom line has moved down to 46 cents from $1.70 per share in the same time frame.
Zacks Rank & Stocks to Consider
SkyWest currently carries a Zacks Rank #5 (Strong Sell).
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, UPS and Werner is pegged at 15%, 7.9% and 8.5%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
SkyWest (SKYW) Shares Down 34.8% Since March: Here's Why
SkyWest, Inc. (SKYW - Free Report) shares have shed 34.8% of value since March compared with the industry’s 25.9% decline.
Reasons for Dismal Performance
Like other airlines, SkyWest is reeling under the effects of the coronavirus pandemic. The demand scenario, which started deteriorating in late January, began to worsen in mid-March.
Evidently, total revenues during the first half of 2020 plunged 26.4% year over year. The COVID-19 pandemic caused a significant reduction in the number of scheduled flights, thereby hurting the top line.
Due to the coronavirus led plunge in air travel demand, the carrier reported wider-than-expected loss in each of the two quarters of 2020. With traffic decline outpacing the capacity reduction, passenger load factor (percentage of seats filled by passengers) tanked 23.4 percentage points to 58% during the first half of 2020.
Unfavorable Estimate Revisions
Thanks to disappearing demand and the economic uncertainty ahead, the Zacks Consensus Estimate for current-quarter bottom line has deterioated to a loss of 7 cents from earnings of 40 cents in the past 60 days. Similarly, the Zacks Consensus Estimate for current-year bottom line has moved down to 46 cents from $1.70 per share in the same time frame.
Zacks Rank & Stocks to Consider
SkyWest currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Zacks Transportation sector are Knight-Swift Transportation Holdings (KNX - Free Report) , United Parcel Service, Inc. (UPS - Free Report) and Werner Enterprises (WERN - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, UPS and Werner is pegged at 15%, 7.9% and 8.5%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>