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Core Viewpoint - SkyWest, Inc. (SKYW) is considered highly attractive from a valuation perspective, trading at a forward price-to-sales (P/S) ratio of 0.98, which is significantly lower than industry levels [1]. Financial Performance - SkyWest's revenues from flying agreements, which account for 96.7% of total revenue, increased by 20.4% year-over-year in 2024. The airline also carried 9.7% more passengers and saw a 10.8% increase in departures year-over-year [5]. - The Zacks Consensus Estimate for earnings in the first and second quarters of 2025, as well as for the full year, has been revised upward, indicating expected growth of 38.6%, 22.5%, and 15.9% from 2024 figures [10]. - SkyWest has a strong earnings surprise history, outperforming the Zacks Consensus Estimate in each of the trailing four quarters with an average surprise of 16.71%. This has contributed to a 35.1% increase in SKYW shares over the past year, outperforming the Zacks Airline industry [11]. Strategic Initiatives - SkyWest is modernizing its fleet to meet increasing travel demand, with agreements to deliver additional E175 aircraft from United Airlines and Alaska Airlines in 2025 and 2026, aiming to operate 278 E175 aircraft by the end of 2026 [6]. - The company has acquired a 25% stake in Contour Airlines and secured multi-year contracts with United Airlines and American Airlines for CRJ550s and CRJ700s, respectively [7]. Shareholder Value - SkyWest has been actively repurchasing shares, having bought back 47,000 shares for $4.9 million in the fourth quarter of 2024. As of December 31, 2024, the company had $48 million available under its share repurchase program, which is expected to enhance earnings per share and reflects management's confidence in the stock's intrinsic value [8]. Investment Recommendation - The combination of attractive valuation, increasing flying contracts, fleet modernization, and shareholder-friendly initiatives suggests that the positives surrounding SKYW stock outweigh concerns regarding operating expenses and debt. The company's Zacks Rank 1 (Strong Buy) further supports the recommendation to add SKYW stock to investment portfolios for healthy returns [15].

Group 1: Stock Performance - SkyWest (SKYW) ended the latest trading session at $83.90, reflecting a +1.1% adjustment from the previous close, outperforming the S&P 500's daily loss of 0.91% [1] - The stock has experienced a significant decline of 25.11% over the past month, which is worse than the Transportation sector's loss of 9.3% and the S&P 500's loss of 7.38% [1] Group 2: Upcoming Earnings - SkyWest is expected to report an EPS of $2.01, indicating a growth of 38.62% compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projecting net sales of $926.38 million, which represents an increase of 15.28% from the year-ago period [2] Group 3: Full-Year Estimates - The full-year Zacks Consensus Estimates for SkyWest are earnings of $9.01 per share and revenue of $3.82 billion, reflecting year-over-year changes of +15.96% and +8.21%, respectively [3] Group 4: Analyst Forecasts - Recent revisions to analyst forecasts for SkyWest are important as they indicate shifting business dynamics, with positive revisions suggesting analysts' confidence in the company's performance [4] Group 5: Zacks Rank and Valuation - SkyWest currently holds a Zacks Rank of 1 (Strong Buy), with a proven track record of outperformance, as 1 stocks have returned an average of +25% annually since 1988 [6] - The company is trading with a Forward P/E ratio of 9.22, which is a premium compared to the industry average Forward P/E of 8.56 [6] Group 6: PEG Ratio and Industry Ranking - SkyWest has a PEG ratio of 1.05, compared to the industry average PEG ratio of 0.66, indicating a higher expected earnings growth rate relative to its peers [7] - The Transportation - Airline industry, which includes SkyWest, has a Zacks Industry Rank of 41, placing it within the top 17% of over 250 industries [7]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, aiding investors in selecting stocks likely to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better performance potential [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score assesses trends in stock price and earnings outlook, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores to identify stocks with the best value, growth potential, and momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] Stock Highlight: SkyWest (SKYW) - SkyWest is rated 1 (Strong Buy) on the Zacks Rank and has a VGM Score of A, with a forward P/E ratio of 9.22 indicating strong value [11] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.64 to $9.01 per share, with an average earnings surprise of 16.7% [12]

Core Viewpoint - SkyWest (SKYW) has experienced a significant decline of -23.3% in share price over the past month, contrasting with the S&P 500's -5.6% and the Zacks Transportation - Airline industry's -7.9% [1] Earnings Estimate Revisions - The consensus earnings estimate for SkyWest is $2.01 per share for the current quarter, reflecting a year-over-year increase of +38.6% [4] - The consensus estimate for the current fiscal year stands at $9.01, indicating a year-over-year change of +16%, which has remained unchanged over the last 30 days [4] - For the next fiscal year, the consensus earnings estimate is $9.76, representing an increase of +8.4% from the previous year, also unchanged over the past month [5] Revenue Growth - The consensus sales estimate for SkyWest is $926.38 million for the current quarter, showing a year-over-year increase of +15.3% [8] - The revenue estimates for the current and next fiscal years are $3.82 billion and $3.99 billion, indicating changes of +8.2% and +4.5%, respectively [8] Last Reported Results and Surprise History - In the last reported quarter, SkyWest generated revenues of $944.4 million, a year-over-year increase of +25.6%, with an EPS of $2.34 compared to $0.42 a year ago [9] - The reported revenues exceeded the Zacks Consensus Estimate of $903.97 million by +4.47%, and the EPS surprise was +32.2% [10] - SkyWest has consistently beaten consensus EPS and revenue estimates in the last four quarters [10] Valuation - SkyWest is graded A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [14] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [12][13] Bottom Line - The Zacks Rank 1 (Strong Buy) for SkyWest suggests potential outperformance in the near term compared to the broader market [15]

Core Viewpoint - SkyWest (SKYW) is experiencing strong air travel demand and high passenger volumes, leading to impressive share price performance and growth opportunities [1] Financial Performance - The Zacks Consensus Estimate for SKYW's earnings per share has been revised upward by 7.7% for the current year and 7.3% for 2026, indicating broker confidence [2] - SKYW's shares have risen 36.1% over the past year, outperforming the Zacks Transportation – Airline industry's growth of 19.7% [3] - The company has a positive earnings surprise history, exceeding the Zacks Consensus Estimate in the last four quarters with an average surprise of 16.7% [4] Industry Position - SKYW belongs to an industry with a Zacks Industry Rank of 35 out of 246, placing it in the top 14% of Zacks Industries, which is crucial for stock performance [5] Growth Factors - The company has a strong track record of meeting the demands of major airline partners, with revenues primarily from flying agreements expected to remain robust due to rising air travel demand [6] - SkyWest operates a fleet of around 500 aircraft, serving over 240 destinations, and carried more than 38 million passengers in 2023 [7] - The company is modernizing its fleet with agreements to operate 278 E175 aircraft by the end of 2026 and has acquired a 25% stake in regional carrier Contour Airlines [7] Strategic Developments - SkyWest has reached a multi-year contract extension with American Airlines for 74 CRJ700s and has taken delivery of four new E175 aircraft as part of an agreement with United Airlines, highlighting its commitment to network expansion [8][9]

Group 1 - The airline sector has experienced significant changes following the pandemic, with some carriers struggling while others have emerged stronger [1]

Company Performance - SkyWest (SKYW) closed at $98.91, reflecting a +0.99% change from the previous day, underperforming the S&P 500's gain of 1.59% [1] - Over the past month, SkyWest shares have decreased by 16.12%, compared to a 5.85% loss in the Transportation sector and a 2.42% loss in the S&P 500 [1] Upcoming Earnings - SkyWest is expected to report an EPS of $2.01, indicating a growth of 38.62% year-over-year, with quarterly revenue projected at $926.38 million, up 15.28% from the same period last year [2] Full-Year Estimates - The Zacks Consensus Estimates for SkyWest's full-year earnings are $9.01 per share and revenue of $3.82 billion, representing year-over-year increases of +15.96% and +8.21% respectively [3] Analyst Revisions - Recent adjustments to analyst estimates for SkyWest are seen as a positive indicator of the company's business outlook, with a 7.64% increase in the Zacks Consensus EPS estimate over the last 30 days [5][3] Valuation Metrics - SkyWest has a Forward P/E ratio of 10.88, which is higher than the industry average of 8.86 [5] - The company holds a PEG ratio of 1.24, compared to the Transportation - Airline industry's average PEG ratio of 0.69 [6] Industry Ranking - The Transportation - Airline industry has a Zacks Industry Rank of 37, placing it in the top 15% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1 - SkyWest (SKYW) has experienced a significant decline of 15.2% over the past four weeks, but it is now in oversold territory, indicating a potential for a trend reversal [1] - The Relative Strength Index (RSI) for SKYW is at 26.67, suggesting that the heavy selling pressure may be exhausting, which could lead to a price rebound [5] - There is a strong consensus among Wall Street analysts that SKYW will report better earnings than previously predicted, with a 7.6% increase in the consensus EPS estimate over the last 30 days [6] Group 2 - SKYW holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7]

Group 1 - SkyWest (NASDAQ: SKYW) is perceived as an undervalued stock with significant upside potential, despite market concerns regarding pilot shortages and airline struggles [1] - The market's focus on these old worries is seen as missing the broader positive outlook for SkyWest [1] Group 2 - Motti Sapir, an economist and financial analyst, emphasizes the importance of simplifying complex financial concepts and uncovering market trends [1] - His approach includes creating clear visuals to make financial data more understandable for investors [1]