In the latest close session, SkyWest (SKYW) was down 2.11% at $98.55. The stock trailed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.26%. Coming into today, shares of the regional airline had lost 4.88% in the past month. In that same time, the Transportation sector gained 4.67%, while the S&P 500 gained 1.89%. Market participants will be closely following the financial results of SkyWest in its upcoming release. The company plans ...

Core Viewpoint - SkyWest, Inc. (SKYW) is currently undervalued based on its trailing 12-month price-to-book (P/B) ratio, trading at 1.50X compared to the industry average of 3.16X, indicating an attractive valuation [1] Financial Performance - SkyWest's revenues from flying agreements, which account for 96.1% of total revenue, increased by 16.5% year-over-year in the first nine months of 2025 [6] - The airline carried 12.3% more passengers and saw a 16.2% increase in departures year-over-year during the same period [6] Fleet Modernization - SkyWest is modernizing its fleet through agreements with major airlines such as United Airlines, Delta Air Lines, and Alaska Airlines [7] - The company has a multi-year contract extension with United Airlines for up to 40 CRJ200 aircraft and is set to receive additional E175 aircraft deliveries from various airlines between 2026 and 2028 [8][9] Financial Health - As of the end of the third quarter of 2025, SkyWest had cash and marketable securities totaling $753.35 million, significantly higher than its current debt of $519.51 million, indicating strong financial flexibility [10] - Long-term debt decreased from $2.19 billion to $1.86 billion, improving the debt-to-capitalization ratio from 53.8% to 49% [10] Shareholder Initiatives - SkyWest has increased its share repurchase plan by $250 million, repurchasing 244,000 shares for $26.6 million in the third quarter of 2025 [11] - The company had $240 million available under its current share repurchase program, which is expected to enhance earnings per share and signal management's confidence in the stock's value [11] Earnings Estimates - The Zacks Consensus Estimate for full-year earnings for 2025 and 2026 has been revised upward, reflecting positive sentiment among brokers [14] - The current earnings estimate for the first quarter of 2026 stands at $2.45, with the full-year 2025 estimate at $10.09 and 2026 at $11.07 [15] Investment Recommendation - Given the attractive valuation, increasing flying contracts, fleet modernization efforts, and shareholder-friendly initiatives, it is suggested that investors consider adding SKYW stock to their portfolios for potential healthy returns [16]

Core Viewpoint - SkyWest, Inc. (SKYW) is experiencing positive momentum due to increases in flying contract rates, fleet modernization efforts, and shareholder-friendly initiatives, leading to upward revisions in earnings estimates for 2025 [1][4]. Financial Performance - The Zacks Consensus Estimate for fourth-quarter 2025 earnings is $2.26 per share, with a full-year estimate of $10.28, reflecting a 3.32% increase from previous estimates [2]. - SkyWest's revenues from flying agreements, which account for 96.1% of total revenue, grew by 16.5% year-over-year in the first nine months of 2025 [5]. - The airline carried 12.3% more passengers and saw a 16.2% increase in departures year-over-year during the same period [5]. Fleet Modernization - SkyWest is modernizing its fleet through agreements with major airlines such as United Airlines, Delta Air Lines, and Alaska Airlines, with plans to acquire 16 E175 aircraft from Embraer by 2028 [6][7]. - As of September 30, 2025, SkyWest had no E175 aircraft deliveries in Q3 2025, aligning with prior expectations [6]. Deferred Revenues and Financial Health - As of September 30, 2025, SkyWest reported cumulative deferred revenues of $269.40 million under its flying contracts [5][8]. - The company ended Q3 2025 with cash and marketable securities totaling $753.35 million, significantly higher than its current debt of $519.51 million, indicating strong financial health [9]. Shareholder Initiatives - SkyWest has increased its share repurchase plan by $250 million, repurchasing 244,000 shares for $26.6 million in Q3 2025, with $240 million remaining under the current program [12]. - These buybacks are expected to enhance earnings per share and reflect management's confidence in the stock's intrinsic value [12]. Valuation - SkyWest is trading at a trailing 12-month price-to-book (P/B) ratio of 1.61X, compared to the industry average of 2.98X, indicating an attractive valuation [13]. - The company holds a Value Score of A, suggesting strong investment potential [13]. Investment Recommendation - Given the favorable valuation, increasing flying contracts, fleet modernization, and shareholder initiatives, it is suggested that investors consider adding SKYW stock to their portfolios for potential healthy returns [16].

Core Viewpoint - The Zacks Transportation - Airline industry has faced significant challenges due to the longest federal government shutdown in U.S. history, which lasted 43 days, leading to flight cancellations and operational disruptions. Despite these challenges, certain companies are expected to show resilience through growth strategies and operational efficiency [1][2]. Industry Overview - The Zacks Airline industry involves transporting passengers and cargo globally, with operators maintaining a fleet of mainline jets and regional planes. The industry includes both legacy carriers and low-cost airlines, and its performance is closely tied to the overall economy. Following the pandemic, air travel demand has improved, and there is a focus on boosting cargo revenues [3]. Factors Affecting Industry Performance - The recent government shutdown caused significant operational strain, with Delta Air Lines estimating a reduction in pre-tax profitability of nearly $200 million, or about 25 cents per share, for the December quarter due to the shutdown [4]. - Despite the shutdown, passenger volumes peaked during the Thanksgiving holiday, with a record 3.13 million passengers screened on a single day, indicating a positive trend for holiday travel [5]. - Labor costs have increased, with Delta reporting a 7% year-over-year rise in salaries and related costs in the first nine months of 2025, which is limiting bottom-line growth due to labor shortages and increased bargaining power of labor groups [6]. Industry Ranking and Earnings Outlook - The Zacks Airline industry currently holds a Zacks Industry Rank of 150, placing it in the bottom 38% of 243 Zacks industries, indicating a negative earnings outlook for the group [7][9]. - Earnings estimates for the industry have declined, with a 21.6% decrease for 2025 and an 8.3% decrease for 2026 over the past year, reflecting analysts' pessimism about earnings growth potential [10]. Market Performance - Over the past year, the Zacks Transportation - Airline industry has gained 8.2%, underperforming the S&P 500's rise of 14.6%, while the broader sector has declined by 6.8% [11]. Valuation Metrics - The industry has a forward 12-month price-to-sales (P/S) ratio of 0.54X, significantly lower than the S&P 500's 5.3X and the sector's 1.31X. Historically, the industry has traded between 0.31X and 1.09X over the past five years [14]. Notable Companies to Watch - LATAM Airlines is benefiting from a lean cost structure and strategic partnerships, with an impressive earnings surprise history, averaging a 29.8% surprise over the last four quarters [16][17]. - SkyWest operates as a regional airline and has seen a 3.6% stock gain over the past six months, with a 7.2% upward revision in earnings estimates for 2026 [20][21]. - Delta has consistently surpassed earnings estimates, with an average beat of 8.9% over the last four quarters, and has gained 30% in stock value over the past six months [23][26].

Technical Analysis - SkyWest (SKYW) has surpassed resistance at the 200-day moving average, indicating a long-term bullish trend [1] - The 200-day simple moving average is a key tool for determining long-term market trends and serves as a support or resistance level [1] Stock Performance - SKYW shares have increased by 6.2% over the past four weeks [2] - The company currently holds a Zacks Rank 2 (Buy), suggesting potential for continued stock price growth [2] Earnings Estimates - There have been three positive earnings estimate revisions for SKYW for the current fiscal year, with no downward revisions [2] - The consensus earnings estimate for SKYW has also increased, strengthening the bullish outlook [2][3] Investment Outlook - The combination of positive earnings estimate revisions and technical indicators suggests that SKYW may offer further gains in the near future [3]

Core Viewpoint - SkyWest (SKYW) shares have shown a modest increase of 0.7% over the past month, closing at $99.34, with analysts suggesting a potential upside of 34.5% based on a mean price target of $133.6 [1] Price Targets - The average price target from analysts ranges from a low of $126.00 to a high of $150.00, with a standard deviation of $9.42, indicating a potential increase of 26.8% to 51% from the current price [2] - A low standard deviation suggests a strong agreement among analysts regarding the price targets, which can be a useful indicator for further research [2][9] Analyst Sentiment - Analysts have shown increasing optimism regarding SkyWest's earnings prospects, with a consensus indicating better-than-expected earnings revisions [4][11] - The Zacks Consensus Estimate for the current year has risen by 3.9% over the past month, with three estimates increasing and no negative revisions [12] Zacks Rank - SkyWest holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, which supports the stock's potential upside [13] Conclusion on Price Targets - While the consensus price target may not be a definitive indicator of the stock's potential gain, it does provide a directional guide for price movement [14]

Core Viewpoint - SkyWest's stock price has significantly declined since August, despite previous optimism about its performance [1] Company Analysis - The stock was initially rated as a Buy at a price of $111 in August [1] - The analyst emphasizes a focus on clear and disciplined breakdowns of companies, prioritizing numerical data and underlying business performance over narratives [1] Market Context - The article reflects a broader sentiment in the market regarding the volatility of stock prices and the importance of thorough analysis in investment decisions [1]

Core Insights - Investors prioritize companies with consistent profitability, measured effectively by net profit margin, which reflects operational efficiency and management quality [1][2] Profitability Metrics - Net profit margin is calculated as Net profit divided by Sales multiplied by 100, indicating a company's ability to convert sales into profits [2] - A strong net profit margin suggests effective cost control and operational strength, essential for rewarding stakeholders and attracting investors [2] Industry Comparisons - Net profit margin varies across industries, complicating direct comparisons; it is crucial for traditional sectors but may be less relevant for technology firms [3] - Differences in accounting practices, particularly regarding non-cash expenses, further complicate comparisons [4] Investment Strategy - A healthy net profit margin and solid EPS growth are key elements sought in a business model, supplemented by additional criteria for maximizing returns [5] Screening Parameters - Criteria for screening include a net margin of at least 0%, positive percentage change in EPS, high broker ratings, and a favorable Zacks Rank [6] - Stocks with a VGM Score of A or B combined with a Zacks Rank of 1 or 2 are identified as having the best upside potential [7] Company Highlights - **SkyWest, Inc. (SKYW)**: Operates as a regional airline with a Zacks Rank of 1 and a VGM Score of A; 2025 earnings estimate revised upward by 3.8% to $10.33 per share [8] - **Interface, Inc. (TILE)**: Largest manufacturer of modular carpets, also holds a Zacks Rank of 1 and a VGM Score of A; 2025 earnings estimate revised to $1.85 per share from $1.70 [9] - **FreightCar America, Inc. (RAIL)**: Specializes in manufacturing railroad freight cars, currently has a Zacks Rank of 2 and a VGM Score of A; earnings estimate remained unchanged [10][11] - **Standard Motor Products, Inc. (SMP)**: Leading manufacturer of automotive replacement parts, holds a Zacks Rank of 2 and a VGM Score of A; 2025 earnings estimate revised upward by $0.04 to $3.80 per share [12][13]

Core Viewpoint - SkyWest (SKYW) shows potential for significant upside, with a mean price target of $133.6 indicating a 35.5% increase from the current price of $98.6 [1] Price Targets - The average price target consists of five estimates ranging from a low of $126.00 to a high of $150.00, with a standard deviation of $9.42, suggesting a consensus among analysts [2] - The lowest estimate indicates a 27.8% increase, while the highest suggests a 52.1% upside [2] Analyst Sentiment - Analysts have shown increasing optimism regarding SkyWest's earnings prospects, as evidenced by a strong agreement in revising EPS estimates higher [11] - Over the last 30 days, three estimates have been revised upward, leading to a 3.9% increase in the Zacks Consensus Estimate [12] Zacks Rank - SkyWest currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors [13] Conclusion on Price Movement - While the consensus price target may not be a reliable indicator of the extent of potential gains, it does provide a useful guide for the direction of price movement [14]

Core Insights - SkyWest, Inc. (SKYW) reported strong third-quarter 2025 results, with earnings per share (EPS) of $2.81 exceeding the Zacks Consensus Estimate of $2.56, marking a 30% year-over-year increase. Revenues reached $1.05 billion, surpassing the Zacks Consensus Estimate of $1.01 billion and reflecting a 15% year-over-year growth [1][7]. Financial Performance - Revenues from flying agreements, which accounted for 96.3% of total revenues, increased by 14.5% compared to the previous year's figure of $1.01 billion. The airline experienced a 10.5% rise in passenger numbers and a 12.4% increase in departures year-over-year. The passenger load factor improved by 0.3 points to 84% [2]. - Operating expenses rose to $876 million, a 12% increase year-over-year, primarily due to higher block hour production, although this was partially offset by operational efficiencies. Cash and marketable securities stood at $753.35 million, up from $727.02 million in the prior quarter, while long-term debt decreased to $1.86 billion from $2.01 billion [5]. Strategic Developments - SkyWest extended its multi-year contract with United Airlines for up to 40 CRJ200 aircraft, indicating a positive outlook on regional flying opportunities. The company plans to expand its E175 fleet to nearly 300 aircraft by the end of 2028, with a purchase agreement for 44 additional E175s secured for delivery from 2028 to 2032 [3][4]. - During the third quarter, SkyWest repurchased 244,000 shares for $26.6 million, with $240 million remaining under its current share repurchase program. Capital expenditures for the quarter totaled $122 million, which included purchases of spare CRJ airframes and parts [6].