Should Value Investors Buy SkyWest (SKYW) Stock?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is SkyWest (SKYW). SKYW is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

Another notable valuation metric for SKYW is its P/B ratio of 1.63. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.09. Over the past 12 months, SKYW's P/B has been as high as 2.02 and as low as 1.30, with a median of 1.69.

Finally, our model also underscores that SKYW has a P/CF ratio of 5.44. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.02. SKYW's P/CF has been as high as 7.64 and as low as 4.42, with a median of 5.89, all within the past year.

These are just a handful of the figures considered in SkyWest's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SKYW is an impressive value stock right now.

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This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.

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SkyWest, Inc. (SKYW): Free Stock Analysis Report

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

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