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6 Reasons Why You Should Add SkyWest Stock to Your Portfolio

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Key Takeaways

  • Shares of SkyWest gained 46.2% in six months, outpacing the 26.2% rise of its industry peers.
  • Analysts raised SKYW's earnings estimates, with Q3 2025 EPS expected to grow 18.52% year over year.
  • As of June 30, 2025, SkyWest had $267 million available under its current share repurchase program.

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.

Against this backdrop, let’s look at the factors that make this stock an attractive pick.

What Makes SKYW an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past six months. Shares of SKYW have gained 46.2% over the past six months compared with the 26.2% rise of the industry it belongs to.

SKYW Stock Six-Month Price Comparison

Zacks Investment Research
Image Source: Zacks Investment Research

Solid Rank & VGM Score: SKYW has 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 direction of estimate revisions serves as an important pointer when it comes to the price of a stock. The Zacks Consensus Estimate for third-quarter 2025 earnings has moved 8.94% north in the past 60 days. For the current year, the consensus mark for earnings has been revised to 6.30% upward in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

Zacks Investment Research
Image Source: Zacks Investment Research

Positive Earnings Surprise History: SKYW has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average beat of 21.92%.

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2025, SKYW’s earnings are expected to grow 18.52% year over year. For 2025, SKYW’s earnings are expected to improve 28.06% year over year.

Growth Factors:SkyWest's fleet-modernization efforts are commendable. SKYW has fleet-related agreements with other airline heavyweights like United Airlines, Delta Air Lines and Alaska Airlines. By 2028-end, SKYW is scheduled to have nearly 300 E175 aircraft. Low fuel costs also support its bottom line.

A solid balance sheet allows SKYW to reward its shareholders in the form of share buybacks.As a reflection of its shareholder-friendly stance, in May 2025, SKYW’s board of directors approved a $250 million increase in its existing share repurchase plan. SKYW repurchased 195,000 shares for $17.3 million during the second quarter of 2025. As of June 30, 2025, SkyWest had $267 million available under its current share repurchase program.

Stocks to Consider

Investors interested in the Transportation sector may also consider LATAM Airlines Group (LTM - Free Report) and Ryanair Holdings plc (RYAAY - Free Report) .

LTM currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

LTM has an expected earnings growth rate of 45% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining one, delivering an average beat of 4.04%.

RYAAY currently sports a Zacks Rank #1.

RYAAY has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters (missed the mark in the remaining quarter), delivering an average beat of 61.20%. The Zacks Consensus Estimate for 2025 earnings has moved 7.11% north in the past 60 days.


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Ryanair Holdings PLC (RYAAY) - free report >>

SkyWest, Inc. (SKYW) - free report >>

LATAM Airlines Group S.A. (LTM) - free report >>

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