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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 1.1% at $99.24. The stock's performance was behind the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.67%.

The stock of regional airline has fallen by 8.3% in the past month, lagging the Transportation sector's gain of 1.49% and the S&P 500's gain of 4.06%.

Investors will be eagerly watching for the performance of SkyWest in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.56, indicating a 18.52% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.01 billion, up 11.13% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $9.95 per share and revenue of $4.01 billion, which would represent changes of +28.06% and +13.73%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SkyWest. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. SkyWest is currently a Zacks Rank #3 (Hold).

In the context of valuation, SkyWest is at present trading with a Forward P/E ratio of 10.09. This valuation marks a premium compared to its industry average Forward P/E of 10.05.

Meanwhile, SKYW's PEG ratio is currently 0.99. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Transportation - Airline industry stood at 0.81 at the close of the market yesterday.

The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 149, finds itself in the bottom 40% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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