SkyWest (SKYW) ended the recent trading session at $99.09, demonstrating a -1.18% change from the preceding day's closing price. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq increased by 0.31%.
The stock of regional airline has fallen by 1.36% in the past month, lagging the Transportation sector's gain of 2.86% and the S&P 500's gain of 5.05%.
The upcoming earnings release of SkyWest will be of great interest to investors. The company is expected to report EPS of $2.31, up 26.92% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $977.68 million, reflecting a 12.75% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.28 per share and revenue of $3.9 billion, which would represent changes of +19.43% and +10.51%, respectively, from the prior year.
Any recent changes to analyst estimates for SkyWest should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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 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).
In terms of valuation, SkyWest is presently being traded at a Forward P/E ratio of 10.8. This indicates a premium in contrast to its industry's Forward P/E of 9.59.
One should further note that SKYW currently holds a PEG ratio of 1.23. 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 average PEG ratio for the Transportation - Airline industry stood at 0.88 at the close of the market yesterday.
The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 48, positioning it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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SkyWest, Inc. (SKYW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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