SkyWest SKYW is bolstered by its robust demand and a strong operational scenario. The company’s expansion initiative is encouraging. Due to these tailwinds, SKYW shares have performed impressively on the bourse. If you have not yet taken advantage of its share price appreciation, 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 (EPS) has been revised upward by 8.2% over the past 60 days for the second quarter of 2026. For 2026 and 2027, the consensus mark for EPS has moved 3.2% and 3.8% north, respectively. These 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 surged 6.1% over the past month, surpassing the Zacks Transportation – Airline industry’s 0.3% fall.
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 three of the trailing four quarters and missed once, delivering an average surprise of 12.75%.
Solid Zacks Rank: SKYW currently carries a Zacks Rank #2 (Buy).
Bullish Industry Rank: The industry to which SkyWestbelongs currently has a Zacks Industry Rank of 28 (out of 243). Such a favorable rank places it in the top 12% of Zacks Industries. Studies show that 50% of a stock’s 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. Hence, reckoning the industry’s performance becomes imperative.
Growth Factors: SkyWest continues to deliver strong operational growth and reliability, supported by fleet expansion and solid performance metrics. The company is strengthening its position in the regional jet market by accelerating the growth of its E175 fleet.
SKYW plans to operate nearly 300 E175 aircraft by the end of 2028, supported by partnerships with major U.S. carriers and the scheduled delivery of 44 additional E175s between 2028 and 2032. This expansion allows the airline to pursue new flying opportunities and meet evolving partner requirements, underscoring the E175’s importance to its long-term fleet strategy. In the fourth quarter of 2025, SkyWest added five E175 aircraft, increasing its total E175 fleet to 270.
SKYW delivered strong year-over-year operational improvements in the fourth quarter of 2025. The company increased total block hours 5.3%, driven by better captain availability, higher fleet utilization and steady demand, with utilization improving across all aircraft types. Departures rose 2.9%, reflecting healthy demand trends. SkyWest achieved an adjusted flight completion rate of 99.9%, underscoring its strong operational reliability and execution.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may consider Allegiant ALGT and Southwest Airlines LUV. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ALGT currently sports a Zacks Rank #1.
Allegiant has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and met the mark once, delivering an average beat of 23.6%.
Southwest Airlines currently sports a Zacks Rank #1.
LUV has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, delivering an average beat of 253.9%.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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