SkyWest (SKYW) Outpaces Stock Market Gains: What You Should Know

In the latest close session, SkyWest (SKYW) was up +1.39% at $92.18. This move outpaced the S&P 500's daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq increased by 0.47%.

Heading into today, shares of the regional airline had lost 12.72% over the past month, lagging the Transportation sector's loss of 8.67% and the S&P 500's loss of 1.88%.

Analysts and investors alike will be keeping a close eye on the performance of SkyWest in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.19, reflecting a 9.5% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $982.63 million, showing a 3.6% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.42 per share and revenue of $4.33 billion. These totals would mark changes of +10.34% and +6.58%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for SkyWest. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, SkyWest boasts a Zacks Rank of #2 (Buy).

Looking at valuation, SkyWest is presently trading at a Forward P/E ratio of 7.96. This expresses a discount compared to the average Forward P/E of 8.22 of its industry.

One should further note that SKYW currently holds a PEG ratio of 1.22. 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 Transportation - Airline industry had an average PEG ratio of 0.45 as trading concluded yesterday.

The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 35, finds itself in the top 15% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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

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