SkyWest SKYW is benefiting from its robust demand and operational efficiency, boosting its prospects. The company’s expansion initiatives are also commendable. Due to these tailwinds, SKYW shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s delve deeper.
Factors Favoring SKYW Stock
Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share has been revised upward by 4.68% over the past 60 days for the current quarter. For 2025, the consensus mark for earnings per share has moved 7.22% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Robust Price Performance: A look at the company’s price trend reveals that its shares have risen 16.3% in the year-to-date period, surpassing the Zacks Transportation – Airline industry’s 11.2% growth.
Image Source: Zacks Investment ResearchPositive Earnings Surprise History:SkyWest has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 21.92%.
Solid Zacks Rank: SKYW currently sports a Zacks Rank #1 (Strong Buy).
Bullish Industry Rank: The industry to which SkyWest belongs currently has a Zacks Industry Rank of 94 (out of 246). Such a favorable rank places it in the top 38% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group to which it belongs.
A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative in this context.
Growth Factors: SKYW continues to demonstrate robust operational growth and reliability, as evidenced by both its expanding fleet and strong performance metrics. SkyWest's strategic move to expand its E175 fleet signals a clear focus on strengthening its position in the regional jet market.
By the end of 2028, the airline is planning to operate nearly 300 E175 aircraft, courtesy of its partnerships with leading U.S. carriers and 44 additional E175s, with deliveries from 2028 to 2032, giving SkyWest the flexibility to support future flying opportunities and meet potential partner needs. This underscores the E175's central role in the company’s fleet strategy, particularly in support of the U.S. regional network.
Moreover, SkyWest is bolstered by significant year-over-year operational growth in the second quarter of 2025. Total block hours increased 19%, which reflects improvements in captain availability, higher fleet utilization and strong demand, with notable utilization gains across all aircraft types. Departures climbed 17.7%, and passengers carried increased by 13.1%, reinforcing strong demand. SkyWest maintained an adjusted flight completion rate of 99.9% and improved raw flight completion to 99.1%, reflecting consistent operational reliability.
Other Stocks to Consider
Investors interested in the Transportation sector may also consider LATAM Airlines Group LTM and The Greenbrier Companies GBX.
LTM currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
LTM has an expected earnings growth rate of 45% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining two quarters, delivering an average beat of 4.04%.
GBX currently carries a Zacks Rank #2 (Buy).
Greenbrier has an expected earnings growth rate of 33% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and met once, delivering an average beat of 70%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SkyWest, Inc. (SKYW): Free Stock Analysis Report Greenbrier Companies, Inc. (The) (GBX): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research