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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
SkyWest (SKYW - Free Report) is a stock many investors are watching right now. SKYW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.85. This compares to its industry's average Forward P/E of 16.17. SKYW's Forward P/E has been as high as 4,094.79 and as low as -25,372.15, with a median of 13.58, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SKYW has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.5.
Investors could also keep in mind United Airlines (UAL - Free Report) , an Transportation - Airline stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, United Airlines holds a P/B ratio of 2.87 and its industry's price-to-book ratio is 4.26. UAL's P/B has been as high as 4.68, as low as 2.01, with a median of 3 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that SkyWest and United Airlines are likely undervalued currently. And when considering the strength of its earnings outlook, SKYW and UAL sticks out as one of the market's strongest value stocks.
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Is SkyWest (SKYW) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
SkyWest (SKYW - Free Report) is a stock many investors are watching right now. SKYW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.85. This compares to its industry's average Forward P/E of 16.17. SKYW's Forward P/E has been as high as 4,094.79 and as low as -25,372.15, with a median of 13.58, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SKYW has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.5.
Investors could also keep in mind United Airlines (UAL - Free Report) , an Transportation - Airline stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, United Airlines holds a P/B ratio of 2.87 and its industry's price-to-book ratio is 4.26. UAL's P/B has been as high as 4.68, as low as 2.01, with a median of 3 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that SkyWest and United Airlines are likely undervalued currently. And when considering the strength of its earnings outlook, SKYW and UAL sticks out as one of the market's strongest value stocks.