In the latest trading session, SkyWest (SKYW) closed at $104.08, marking a -4.26% move from the previous day. This change lagged the S&P 500's 0.43% loss on the day. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 0.92%.
The regional airline's shares have seen an increase of 7.07% over the last month, not keeping up with the Transportation sector's gain of 11.09% and outstripping the S&P 500's loss of 0.5%.
The upcoming earnings release of SkyWest will be of great interest to investors. In that report, analysts expect SkyWest to post earnings of $2.19 per share. This would mark a year-over-year decline of 9.5%. Our most recent consensus estimate is calling for quarterly revenue of $982.63 million, up 3.6% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.42 per share and a revenue of $4.33 billion, representing changes of +10.34% and +6.58%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SkyWest. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.14% higher within the past month. SkyWest presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, SkyWest is holding a Forward P/E ratio of 9.52. Its industry sports an average Forward P/E of 9.92, so one might conclude that SkyWest is trading at a discount comparatively.
One should further note that SKYW currently holds a PEG ratio of 0.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.58.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 21, finds itself in the top 9% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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SkyWest, Inc. (SKYW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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