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

SkyWest (SKYW) closed the most recent trading day at $94.18, moving +2.65% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.54%. Meanwhile, the Dow gained 0.66%, and the Nasdaq, a tech-heavy index, added 0.77%.

Shares of the regional airline have depreciated by 14.06% over the course of the past month, underperforming the Transportation sector's loss of 9.19%, and the S&P 500's loss of 4.71%.

Investors will be eagerly watching for the performance of SkyWest in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.19, indicating a 9.5% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $982.63 million, indicating a 3.6% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.42 per share and a revenue of $4.33 billion, indicating changes of +10.34% and +6.58%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for SkyWest. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, SkyWest possesses a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that SkyWest has a Forward P/E ratio of 8.04 right now. This expresses a discount compared to the average Forward P/E of 8.57 of its industry.

Also, we should mention that SKYW has a PEG ratio of 1.23. 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. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.44.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 27% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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

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