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Here's Why SkyWest (SKYW) Deserves a Place in Your Portfolio
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SkyWest, Inc. (SKYW - Free Report) is benefiting from an improvement in air-travel demand. The buoyant air-travel demand is helping SkyWest carry more passengers. As a result, the passenger load factor (percentage of seats filled by passengers) is also rising.
Let’s delve deeper to unearth the factors that make the stock an attractive investment opportunity.
Solid Rank & VGM Score: SkyWest currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Earnings Estimates: The Zacks Consensus Estimate for 2022 earnings has been revised 21.1% upward over the past 60 days. The favorable estimate revisions reflect the confidence of brokers in the stock.
Given the wealth of information at brokers’ disposal, it is in the best interest of investors to be guided by their expert advice and the direction of their estimate revisions. This is because the path of estimate revisions serves as an important pointer when it comes to ascertaining the stock price.
Positive Earnings Surprise History: SkyWest has an impressive earnings surprise history. The company delivered an earnings surprise of 358.86% in the last four quarters, on average.
Other Tailwinds: SkyWest's fleet-modernization efforts are also commendable. In a bid to modernize its fleet, SkyWest entered into an agreement with Delta Air to purchase and operate 16 new E175 aircraft in August. Seven planes were delivered in the third quarter of 2022. Four aircrafts are expected to be delivered in fourth-quarter 2022. Three aircrafts are expected to get delivered in 2023 and 2024. SkyWest also has agreements with other leading airlines.
Furthermore, with an improvement in air-travel demand, SkyWest had 18.4% more passengers in the first nine months of 2022 compared with the year-ago level. As a result, the passenger load factor (percentage of seats filled by passengers) expanded 10.9 percentage points to 82.9% in the first nine months of 2022. With air-travel demand continuing to improve, the load factor is likely to be impressive in the remaining quarter of 2022.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are as follows:
Covenant Logistics (CVLG - Free Report) : CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.
CVLG currently sports a Zacks Rank #1. The gradually improving freight market scenario is a tailwind for Covenant. CVLG’s cost-control efforts are also appreciated. The Zacks Consensus Estimate for 2022 earnings has been revised 10.1% upward in the past 60 days.
Teekay Tankers (TNK - Free Report) : TNK is well-served by the increase in tanker rates. A gradual ramp-up in economic activities also bodes well. However, high fuel costs are weighing on the bottom line.
Teekay Tankers currently flaunts a Zacks Rank #1. TNK’s shares have soared 171% in a year. Over the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved 87.6% north.
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Here's Why SkyWest (SKYW) Deserves a Place in Your Portfolio
SkyWest, Inc. (SKYW - Free Report) is benefiting from an improvement in air-travel demand. The buoyant air-travel demand is helping SkyWest carry more passengers. As a result, the passenger load factor (percentage of seats filled by passengers) is also rising.
Let’s delve deeper to unearth the factors that make the stock an attractive investment opportunity.
Solid Rank & VGM Score: SkyWest currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Earnings Estimates: The Zacks Consensus Estimate for 2022 earnings has been revised 21.1% upward over the past 60 days. The favorable estimate revisions reflect the confidence of brokers in the stock.
Given the wealth of information at brokers’ disposal, it is in the best interest of investors to be guided by their expert advice and the direction of their estimate revisions. This is because the path of estimate revisions serves as an important pointer when it comes to ascertaining the stock price.
Positive Earnings Surprise History: SkyWest has an impressive earnings surprise history. The company delivered an earnings surprise of 358.86% in the last four quarters, on average.
Other Tailwinds: SkyWest's fleet-modernization efforts are also commendable. In a bid to modernize its fleet, SkyWest entered into an agreement with Delta Air to purchase and operate 16 new E175 aircraft in August. Seven planes were delivered in the third quarter of 2022. Four aircrafts are expected to be delivered in fourth-quarter 2022. Three aircrafts are expected to get delivered in 2023 and 2024. SkyWest also has agreements with other leading airlines.
Furthermore, with an improvement in air-travel demand, SkyWest had 18.4% more passengers in the first nine months of 2022 compared with the year-ago level. As a result, the passenger load factor (percentage of seats filled by passengers) expanded 10.9 percentage points to 82.9% in the first nine months of 2022. With air-travel demand continuing to improve, the load factor is likely to be impressive in the remaining quarter of 2022.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are as follows:
Covenant Logistics (CVLG - Free Report) : CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.
CVLG currently sports a Zacks Rank #1. The gradually improving freight market scenario is a tailwind for Covenant. CVLG’s cost-control efforts are also appreciated. The Zacks Consensus Estimate for 2022 earnings has been revised 10.1% upward in the past 60 days.
Teekay Tankers (TNK - Free Report) : TNK is well-served by the increase in tanker rates. A gradual ramp-up in economic activities also bodes well. However, high fuel costs are weighing on the bottom line.
Teekay Tankers currently flaunts a Zacks Rank #1. TNK’s shares have soared 171% in a year. Over the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved 87.6% north.