Company Overview - SkyWest (SKYW) has experienced a share price decline of 6.55% over the past month, underperforming the Transportation sector's loss of 5.95% and the S&P 500's loss of 0.71% [1] - The company is projected to report earnings of $1.77 per share, reflecting a year-over-year growth of 321.43%, with revenue estimates at $901.47 million, indicating a 19.91% increase from the previous year [7] Financial Performance - For the full year, earnings are estimated at $7.16 per share and revenue at $3.48 billion, showing significant changes of +829.87% and +18.71% respectively from the prior year [2] - The Zacks Consensus EPS estimate has seen a slight upward revision of 0.02% over the past month, indicating positive sentiment towards the company's performance [3] Industry Context - The Transportation - Airline industry holds a Zacks Industry Rank of 29, placing it within the top 12% of over 250 industries, suggesting strong performance relative to peers [4] - SkyWest's Forward P/E ratio stands at 14.29, which is higher than the industry average Forward P/E of 10, indicating a premium valuation [9] Analyst Insights - The Zacks Rank system, which ranks stocks from 1 (Strong Buy) to 5 (Strong Sell), shows that SkyWest currently holds a 1 ranking, which has historically yielded an average annual return of +25% since 1988 [3] - Recent revisions to analyst forecasts for SkyWest are seen as a positive indicator of the company's business outlook, as these changes often correlate with stock price performance [8]

Core Viewpoint - SkyWest (SKYW) has shown a downtrend recently, losing 7.9% over the past two weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1] Group 1: Technical Analysis - The formation of a hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be subsiding [1] - A hammer pattern occurs when a stock opens lower, makes a new low, but then closes near or above its opening price, signaling a potential loss of control by bears [2] - Hammer candles can appear on various timeframes and should be used alongside other bullish indicators for confirmation [2] Group 2: Fundamental Analysis - There has been a positive trend in earnings estimate revisions for SkyWest, which is a bullish indicator, as it typically leads to price appreciation [3] - Over the last 30 days, the consensus EPS estimate for the current year has increased by 0%, indicating analysts expect better earnings than previously predicted [3] - SkyWest holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, suggesting strong potential for outperformance [3]

Transportation Sector Overview - The Zacks Transportation sector includes airlines, railroads, package delivery companies, and truckers, showcasing its diversified nature [2] - Most sector participants have performed well in 2024 due to multiple tailwinds, with expectations of continued strong performance in 2025 [3] Key Tailwinds in 2024 - Airline stocks benefited from improved air-travel demand post-pandemic and normalized economic activities, with record-breaking traffic during Thanksgiving and higher summer passenger volumes [4] - E-commerce demand remained strong, benefiting packaging companies, while transportation companies improved their financial health [5] - Many companies increased dividends, providing a steady income source and cushion against market uncertainty [6] - Companies cut costs to combat weak demand from high inflation, and declining oil prices positively impacted transportation companies' bottom lines [7] 2025 Projections - The International Air Transport Association (IATA) projects global passenger counts to exceed 5 billion in 2025, indicating continued growth for airlines [8] - Transportation stocks like Wabtec Corp, United Airlines Holdings, Southwest Airlines, SkyWest, and ZIM Integrated Shipping Services are expected to perform well in 2025 [9] Company Highlights Wabtec Corp (WAB) - Wabtec offers technology-based locomotives and services for the freight rail and passenger transit industries, with a strong balance sheet and shareholder-friendly stance [10] - Expected earnings growth rate of 13.60% for 2025, with a 4.1% improvement in Zacks Consensus Estimate over the past 90 days [11] - Market capitalization of $34.87 billion and Zacks Rank 2 [11] United Airlines Holdings (UAL) - United Airlines benefits from strong air travel demand and new routes, with an environment-friendly approach [12] - Expected earnings growth rate of 14.15% for 2025, with a 5.8% improvement in Zacks Consensus Estimate over the past 90 days [13] - Market capitalization of $31.75 billion and Zacks Rank 2 [13] Southwest Airlines (LUV) - Southwest Airlines anticipates a 3.5%-5.5% year-over-year increase in Q4 2024 unit revenues, driven by healthy travel demand [14] - Expected earnings growth rate of 110.13% for 2025, with a 21.7% improvement in Zacks Consensus Estimate over the past 90 days [15] - Market capitalization of $20.06 billion and Zacks Rank 1 [15] SkyWest (SKYW) - SkyWest focuses on fleet modernization and has agreements with major airlines like United Airlines and Alaska Airlines [16] - Expected earnings growth rate of 16.6% for 2025, with a 7.1% improvement in Zacks Consensus Estimate over the past 90 days [17] - Market capitalization of $4.31 billion and Zacks Rank 1 [17] ZIM Integrated Shipping Services (ZIM) - ZIM provides container shipping services internationally, with a Zacks Consensus Estimate for 2025 earnings improving over 100% in the past 90 days [18] - Market capitalization of $2.45 billion and Zacks Rank 1 [18]

Core Viewpoint - The article emphasizes the importance of value investing and highlights SkyWest (SKYW) as a strong candidate for value investors due to its favorable valuation metrics and strong earnings outlook [2][4][7]. Valuation Metrics - SkyWest (SKYW) has a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating it is a strong value stock [4]. - The Forward P/E ratio for SKYW is 12.83, significantly lower than the industry average of 16.93, with a 52-week range of 9.16 to 104.60 [4]. - The PEG ratio for SKYW is 0.89, compared to the industry average of 1.08, suggesting it is undervalued relative to its expected earnings growth [5]. - The P/B ratio for SKYW is 1.85, which is attractive compared to the industry average of 4.83, with a 52-week range of 0.93 to 2.01 [6]. Earnings Outlook - The combination of SKYW's strong valuation metrics and positive earnings outlook positions it as an impressive value stock currently [7].

Core Viewpoint - SkyWest, Inc. (SKYW) is experiencing growth driven by flying contract rate increases, fleet modernization, and shareholder-friendly initiatives, with positive earnings estimates for 2024 [1][2]. Group 1: Financial Performance - SkyWest's third-quarter revenues reached $912.8 million, exceeding the Zacks Consensus Estimate of $887.5 million, marking a 19.1% year-over-year increase [4]. - Revenues from flying agreements, which account for 96.7% of total revenue, grew 19.1% from $883.49 million in the prior year [5]. - The airline carried 10.3% more passengers and had 11.8% more departures year-over-year in the reported quarter [5]. Group 2: Fleet Modernization - SkyWest is modernizing its fleet through agreements with major airlines, including Delta, United Airlines, and Alaska Airlines, with plans to operate 278 E175 aircraft by the end of 2026 [6]. - The company has also acquired a 25% stake in Contour Airlines and entered a multi-year contract with United Airlines for 40 CRJ550s [7]. Group 3: Shareholder Initiatives - SkyWest repurchased 217,000 shares for $16.3 million during the third quarter of 2024, with $53 million remaining under its current share repurchase program [8]. Group 4: Stock Performance - SKYW shares have gained 119.2% year-to-date, outperforming its industry and showing a strong earnings surprise history with an average surprise of 79.12% over the last four quarters [9][10]. Group 5: Valuation - From a valuation perspective, SKYW is trading at a discount compared to the industry based on the price-to-book ratio, holding a Value Score of A [14].

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about SkyWest (SKYW) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.SkyWest currently has an average brokerage recommendation (ABR) ...

Shares of United Airlines (UAL) have performed exceedingly well on the bourse so far this year. Shares of this Chicago-based company have skyrocketed 133.5% year to date, outperforming its industry’s 36.9% growth.YTD Price Comparison Image Source: Zacks Investment Research Given this excellent price performance, let us delve deep to unearth the reasons behind this and also find out if there is further scope for upside.Improvement in air travel demand following the end of the pandemic bodes well for United A ...

SkyWest, Inc. (SKYW) performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.Let’s take a look at the factors that make the stock a strong investment pick at the moment.An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 112.3% so far this year outperforming the industry’s 34.8% growth.Image Source: Zacks Investment ResearchSolid Rank & VGM Scor ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

SkyWest (SKYW) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this regional airline have returned +16%, compared to the Zacks S&P 500 composite's -0.5% change. During this period, the Zacks Transportation - Airline industry, which SkyWest falls in, has lost 1.3%. The key question now is: What could be the stock's future direction?While media releases or ...