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SkyWest (SKYW) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest close session, SkyWest (SKYW - Free Report) was down 1.51% at $96.43. The stock's change was less than the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.7%, and the tech-heavy Nasdaq lost 0.91%.

Heading into today, shares of the regional airline had lost 4.64% over the past month, outpacing the Transportation sector's loss of 0% and lagging the S&P 500's gain of 1.44%.

Market participants will be closely following the financial results of SkyWest in its upcoming release. The company is predicted to post an EPS of $2.31, indicating a 26.92% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $977.68 million, showing a 12.75% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.28 per share and a revenue of $3.9 billion, signifying shifts of +19.43% and +10.51%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for SkyWest. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. SkyWest is currently sporting a Zacks Rank of #2 (Buy).

In the context of valuation, SkyWest is at present trading with a Forward P/E ratio of 10.55. This valuation marks a premium compared to its industry average Forward P/E of 9.31.

We can additionally observe that SKYW currently boasts a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SKYW's industry had an average PEG ratio of 0.88 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 47, putting it in the top 20% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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