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Here's Why Investors Should Buy SkyWest (SKYW) Stock Now
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SkyWest, Inc. (SKYW - Free Report) performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s take a look at the factors that make the stock a strong investment pick at the moment.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 219.4% in the past year, outperforming the industry’s 5% growth.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: SKYW currently sports a Zacks Rank #1 (Strong 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 or 2 (Buy), offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions: The positivity surrounding the stock is evident from the fact that the Zacks Consensus Estimate for first-quarter 2024 earnings has improved 33.7% over the past 90 days. The Zacks Consensus Estimate for 2024 earnings has moved north 11.1% in the past 90 days.
Positive Earnings Surprise History: SkyWest has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 128.02%.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For first-quarter 2024, SKYW's earnings are expected to grow more than 100% year over year. For 2024, SKYW's earnings are expected to grow more than 100% year over year.
Driving Factors: We are impressed by SKYW's efforts to reward its shareholders through buybacks. Per its previously announced share repurchase program authorized by SKYW’s board of directors in May 2023, SKYW repurchased 1.0 million shares for $45 million in the fourth quarter of 2023. For the full-year 2023, SkyWest repurchased 10.6 million shares for $289 million. As of Dec 31, 2023, SkyWest had $91 million available under its current share repurchase program.
SkyWest's fleet-modernization efforts are commendable. Concurrent with its fourth-quarter 2023 results, SKYW announced that it has acquired a 25% ownership stake in Contour Airlines, a Part 135 carrier. The Contour Airlines deal includes an asset provisioning agreement, per which SKYW will offer CRJ airframes, engines and rotatable parts to the company. By 2026-end, SKYW is scheduled to operate 258 E175 aircraft.
GATX has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 16.47%.
The Zacks Consensus Estimate for 2024 earnings has been revised 6.1% upward over the past 90 days. GATX has an expected earnings growth rate of 3.68% for 2024. Shares of GATX have gained 13.9% in the past year.
CPA has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 18.02%.
The Zacks Consensus Estimate for CPA’s 2024 earnings has been revised 7.1% upward over the past 90 days. Shares of CPA have gained 7.2% in the past year.
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Here's Why Investors Should Buy SkyWest (SKYW) Stock Now
SkyWest, Inc. (SKYW - Free Report) performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s take a look at the factors that make the stock a strong investment pick at the moment.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 219.4% in the past year, outperforming the industry’s 5% growth.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: SKYW currently sports a Zacks Rank #1 (Strong 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 or 2 (Buy), offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions: The positivity surrounding the stock is evident from the fact that the Zacks Consensus Estimate for first-quarter 2024 earnings has improved 33.7% over the past 90 days. The Zacks Consensus Estimate for 2024 earnings has moved north 11.1% in the past 90 days.
Positive Earnings Surprise History: SkyWest has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 128.02%.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For first-quarter 2024, SKYW's earnings are expected to grow more than 100% year over year. For 2024, SKYW's earnings are expected to grow more than 100% year over year.
Driving Factors: We are impressed by SKYW's efforts to reward its shareholders through buybacks. Per its previously announced share repurchase program authorized by SKYW’s board of directors in May 2023, SKYW repurchased 1.0 million shares for $45 million in the fourth quarter of 2023. For the full-year 2023, SkyWest repurchased 10.6 million shares for $289 million. As of Dec 31, 2023, SkyWest had $91 million available under its current share repurchase program.
SkyWest's fleet-modernization efforts are commendable. Concurrent with its fourth-quarter 2023 results, SKYW announced that it has acquired a 25% ownership stake in Contour Airlines, a Part 135 carrier. The Contour Airlines deal includes an asset provisioning agreement, per which SKYW will offer CRJ airframes, engines and rotatable parts to the company. By 2026-end, SKYW is scheduled to operate 258 E175 aircraft.
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Transportation sector are GATX Corporation (GATX - Free Report) and Copa Holdings, S.A. (CPA - Free Report) . Each stock presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
GATX has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 16.47%.
The Zacks Consensus Estimate for 2024 earnings has been revised 6.1% upward over the past 90 days. GATX has an expected earnings growth rate of 3.68% for 2024. Shares of GATX have gained 13.9% in the past year.
CPA has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 18.02%.
The Zacks Consensus Estimate for CPA’s 2024 earnings has been revised 7.1% upward over the past 90 days. Shares of CPA have gained 7.2% in the past year.