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SkyWest (SKYW) Outperforms Broader Market: What You Need to Know

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SkyWest (SKYW - Free Report) ended the recent trading session at $97.79, demonstrating a +2.7% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.96% for the day. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 0.94%.

Heading into today, shares of the regional airline had lost 2.76% over the past month, lagging the Transportation sector's loss of 2.22% and the S&P 500's gain of 0.5%.

Investors will be eagerly watching for the performance of SkyWest in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.31, signifying a 26.92% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $977.68 million, up 12.75% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.28 per share and a revenue of $3.9 billion, indicating changes of +19.43% and +10.51%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for SkyWest. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. SkyWest presently features a Zacks Rank of #2 (Buy).

From a valuation perspective, SkyWest is currently exchanging hands at a Forward P/E ratio of 10.26. This valuation marks a premium compared to its industry average Forward P/E of 9.05.

Meanwhile, SKYW's PEG ratio is currently 1.17. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Transportation - Airline industry stood at 0.84 at the close of the market yesterday.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 70, putting it in the top 29% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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