SkyWest (SKYW) Declines More Than Market: Some Information for Investors

SkyWest (SKYW) closed the most recent trading day at $90.82, moving -1.26% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.08% for the day. On the other hand, the Dow registered a loss of 0.61%, and the technology-centric Nasdaq increased by 0.08%.

Coming into today, shares of the regional airline had lost 13.06% in the past month. In that same time, the Transportation sector lost 6.33%, while the S&P 500 lost 2.16%.

The investment community will be closely monitoring the performance of SkyWest in its forthcoming earnings report. On that day, SkyWest is projected to report earnings of $2.19 per share, which would represent a year-over-year decline of 9.5%. In the meantime, our current consensus estimate forecasts the revenue to be $982.63 million, indicating a 3.6% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $11.42 per share and a revenue of $4.33 billion, demonstrating changes of +10.34% and +6.58%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for SkyWest. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate remained stagnant. At present, SkyWest boasts a Zacks Rank of #2 (Buy).

In terms of valuation, SkyWest is presently being traded at a Forward P/E ratio of 8.06. This signifies a discount in comparison to the average Forward P/E of 8.34 for its industry.

We can also see that SKYW currently has a PEG ratio of 1.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Airline was holding an average PEG ratio of 0.46 at yesterday's closing price.

The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 33, positioning it in the top 14% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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