Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: SkyWest (SKYW) - SkyWest currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [3] Performance Metrics - Over the past week, SkyWest shares increased by 5.97%, significantly outperforming the Zacks Transportation - Airline industry, which rose by only 0.13% [5] - In a longer timeframe, SkyWest shares have risen by 6.54% over the past month, compared to the industry's 1.02% [5] - Over the last quarter, SkyWest shares increased by 5.65%, and over the past year, they surged by 99.39%, while the S&P 500 only moved 5.14% and 24.19% respectively [6] Trading Volume - The average 20-day trading volume for SkyWest is 368,876 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for SkyWest have been revised upwards, with no downward revisions, raising the consensus estimate from $8.35 to $9.01 [9] - For the next fiscal year, two estimates have also moved upwards, indicating positive sentiment [9] Conclusion - Given the strong performance metrics and positive earnings outlook, SkyWest is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment opportunity [11]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the short term [2][3] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook by examining projected and historical earnings, sales, and cash flow to find stocks with sustainable growth potential [4] Momentum Score - The Momentum Style Score evaluates stocks based on price trends and earnings outlook changes, utilizing metrics like one-week price change and monthly earnings estimate changes to identify high-momentum buying opportunities [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors who utilize multiple investing styles [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [10][11] Company Spotlight: SkyWest (SKYW) - SkyWest, a regional airline based in St. George, UT, holds a Zacks Rank of 1 (Strong Buy) and a VGM Score of A, making it an attractive option for growth investors [12] - The company is projected to experience a year-over-year earnings growth of 16% for the current fiscal year, with recent upward revisions in earnings estimates [13]

Core Insights - SkyWest, Inc. (SKYW) reported better-than-expected fourth-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate and showing year-over-year improvement [1][2]. Financial Performance - Quarterly earnings per share (EPS) reached $2.34, exceeding the Zacks Consensus Estimate of $1.77 and improving over 100% year-over-year [1]. - Revenues totaled $944.4 million, beating the Zacks Consensus Estimate of $904 million and reflecting a 26% year-over-year increase due to rising flying contract rates [2]. - Revenues from flying agreements, which contributed 96.7% to total revenues, grew 25.3% from the prior year's figure of $912.8 million [3]. - The airline carried 13.2% more passengers year-over-year, with departures increasing by 16.4% [3]. - Operating expenses were $800 million, up 10% from the previous year, attributed to increased flight production [5]. Contracts and Fleet Expansion - SkyWest announced a multi-year contract extension with American Airlines for a total of 74 CRJ700s and took delivery of four new E175 aircraft under an agreement with United Airlines [4]. - By the end of 2026, SkyWest is scheduled to operate 278 E175 aircraft [4]. Shareholder Returns and Capital Expenditures - During the fourth quarter, SkyWest repurchased 47,000 shares of common stock for $4.9 million, with $48 million remaining under its current share repurchase program [6]. - Capital expenditures for the reported quarter amounted to $186 million [6]. Cash and Debt Position - At the end of the fourth quarter, the company had cash and marketable securities of $801.62 million, down from $836.04 million in the prior quarter [5]. - Long-term debt (net of current maturities) was $2.14 billion, a decrease from $2.19 billion at the end of the previous quarter [5].

Core Viewpoint - SkyWest (SKYW) reported quarterly earnings of $2.34 per share, exceeding the Zacks Consensus Estimate of $1.77 per share, and showing significant growth from $0.42 per share a year ago, indicating a strong performance in the regional airline sector [1][2]. Financial Performance - SkyWest's revenues for the quarter ended December 2024 were $944.4 million, surpassing the Zacks Consensus Estimate by 4.47%, and up from $751.79 million year-over-year [2]. - The company has consistently outperformed consensus EPS estimates over the last four quarters, achieving earnings surprises of 32.20% and 12.50% in the most recent quarters [1][2]. Stock Performance - SkyWest shares have increased approximately 15.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 2.7% [3]. - The current Zacks Rank for SkyWest is 3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [6]. Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $1.80 on revenues of $886 million, while the estimate for the current fiscal year is $8.37 on revenues of $3.78 billion [7]. - The trend of estimate revisions for SkyWest is currently mixed, which may change following the recent earnings report [6]. Industry Context - The Transportation - Airline industry, to which SkyWest belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]. - Allegiant Travel (ALGT), another company in the same industry, is expected to report significant earnings growth, with a consensus EPS estimate of $1.88 per share, reflecting a year-over-year increase of 1609.1% [9].

Financial Performance - SkyWest reported Q4 2024 net income of $97 million, or $2.34 per diluted share, compared to $18 million, or $0.42 per diluted share, in Q4 2023, representing a 439% increase in net income year-over-year[2] - For the full year 2024, SkyWest achieved net income of $323 million, or $7.77 per diluted share, compared to $34 million, or $0.77 per diluted share, in 2023, marking a 853% increase in annual net income[2] - Q4 2024 revenue was $944 million, up $192 million, or 26%, from $752 million in Q4 2023, driven by a 20% increase in block hour production[4] - Operating expenses in Q4 2024 were $800 million, an increase of $76 million, or 10%, from $724 million in Q4 2023, primarily due to increased flight production[5] Cash and Debt Management - SkyWest had $802 million in cash and marketable securities as of December 31, 2024, down from $836 million at September 30, 2024[6] - Total debt remained flat at $2.7 billion as of December 31, 2024, down from $3.0 billion at the end of 2023[6] Fleet and Operations - SkyWest took delivery of four new E175 aircraft in Q4 2024 and has a multi-year contract extension with American Airlines for 74 CRJ700s[3] - By the end of 2026, SkyWest is scheduled to operate a total of 278 E175 aircraft, with 25 deliveries completed in 2024 and 8 anticipated in 2025[9] Shareholder Actions - The company repurchased 47,000 shares of common stock for $4.9 million during Q4 2024, with an average price per share of $104.51[7] Asset Management - As of December 31, 2024, SkyWest's total assets were $7.14 billion, an increase from $7.03 billion at the end of 2023[18] Operational Metrics - Total block hours increased by 20.5% to 350,318 for the three months ended December 31, 2024, compared to 290,754 in 2023[21] - Passengers carried rose by 13.2% to 11,231,510 in Q4 2024, up from 9,925,655 in Q4 2023[21] - Departures increased by 16.4% to 206,588 in Q4 2024, compared to 177,433 in Q4 2023[21] - E175 block hours grew by 19.4% to 211,519 in Q4 2024, from 177,104 in Q4 2023[21] - CRJ900 block hours surged by 37.9% to 23,711 in Q4 2024, compared to 17,198 in Q4 2023[21] - Average trip length decreased slightly by 0.4% to 443 miles in Q4 2024, from 445 miles in Q4 2023[21] - Passenger load factor declined by 1.2 percentage points to 82.2% in Q4 2024, down from 83.4% in Q4 2023[21] - Adjusted flight completion remained stable at 99.9% for both Q4 2024 and Q4 2023[21] - Raw flight completion decreased by 0.5 percentage points to 99.0% in Q4 2024, compared to 99.5% in Q4 2023[21] - For the year ended December 31, 2024, total block hours increased by 13.3% to 1,292,040 from 1,140,443 in 2023[21]

Company Performance - SkyWest (SKYW) closed at $116.06, reflecting a +1.1% increase compared to the previous day, outperforming the S&P 500's daily gain of 0.61% [1] - Over the past month, SkyWest shares have risen by 11.1%, surpassing the Transportation sector's gain of 4.09% and the S&P 500's gain of 2.08% [1] Upcoming Earnings - SkyWest is set to disclose its earnings on January 30, 2025, with projected earnings of $1.77 per share, indicating a year-over-year growth of 321.43% [2] - The consensus estimate anticipates revenue of $903.97 million, representing a 20.24% increase from the same quarter last year [2] Analyst Estimates - Recent changes to analyst estimates for SkyWest reflect positive sentiment regarding the company's business operations and profit generation capabilities [3] - Upward revisions in estimates are often linked to anticipated stock price performance, suggesting potential investment opportunities [4] Zacks Rank and Valuation - SkyWest currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having increased by 0.2% in the past month [5] - The company has a Forward P/E ratio of 13.72, which is a premium compared to the industry's average Forward P/E of 9.36 [6] Industry Context - The Transportation - Airline industry, to which SkyWest belongs, has a Zacks Industry Rank of 28, placing it in the top 12% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the potential for investment in well-ranked sectors [7]

Group 1 - SkyWest's stock closed at $109.05, reflecting a decrease of -0.77% from the previous trading day, while the S&P 500 lost 0.21% [1] - Over the past month, SkyWest shares have gained 10.56%, contrasting with a 1.8% loss in the Transportation sector and a 1.56% loss in the S&P 500 [1] - The upcoming earnings report on January 30, 2025, is expected to show an EPS of $1.77, representing a 321.43% increase from the same quarter last year, with revenue forecasted at $903.97 million, a 20.24% increase [2] Group 2 - Recent changes in analyst estimates for SkyWest indicate a favorable outlook on the company's business health and profitability [3] - The Zacks Rank system, which incorporates estimate changes, has a history of outperforming, with 1 stocks returning an average annual gain of +25% since 1988 [5] - SkyWest currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate having moved 0.2% higher over the past month [5] Group 3 - SkyWest is trading at a Forward P/E ratio of 13.14, which is higher than the industry average of 9.16, suggesting it is trading at a premium [6] - The Transportation - Airline industry has a Zacks Industry Rank of 29, placing it in the top 12% of over 250 industries [6] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a strong performance potential for SkyWest within its industry [7]

Core Viewpoint - SkyWest (SKYW) has shown exceptional stock performance in 2024, with a 91.8% year-over-year increase, significantly outperforming the industry average of 31.1% [1][2]. Group 1: Growth Drivers - The increase in air travel demand, particularly in the leisure sector, is a primary factor driving growth for SkyWest [3]. - SkyWest reported an 18.7% year-over-year revenue growth in the first nine months of 2024, primarily due to a 19.1% rise in flying agreements, which now account for 96.8% of total revenues [3]. - The supply chain challenges faced by Boeing have inadvertently benefited SkyWest by improving pilot staffing, as major airlines have slowed or paused pilot hiring [4]. Group 2: Fleet and Operations - SkyWest operates a fleet of approximately 500 aircraft, serving over 240 destinations across North America, and carried more than 38 million passengers in 2023 [5]. - 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 [5]. Group 3: Future Outlook - With strong air travel demand expected to continue, SkyWest's stock is likely to maintain positive market performance in the upcoming year [6]. - The Zacks Consensus Estimate for SkyWest's fourth quarter of 2024, full-year 2024, and full-year 2025 has been revised upward by 3%, 3%, and 5.3% respectively over the past 60 days [7].

Company Overview - SkyWest (SKYW) operates regional jets for major U.S. airlines and has a strong track record of meeting the requirements of its airline partners [9] - The company is headquartered in St. George, Utah, and has been in operation since 1972 [9] Industry Performance - The airline industry, particularly the segment SKYW belongs to, has a Zacks Industry Rank of 29 out of 249, placing it in the top 12% of Zacks Industries [5] - The industry's performance is crucial, as studies indicate that 50% of a stock's price movement is directly related to its industry group [5] Financial Performance - SKYW's shares have gained 97.8% over the past year, significantly outperforming the industry's growth of 30.4% [8] - The Zacks Consensus Estimate for SKYW's current and next-year earnings has been revised upward by 4.1% and 7.1%, respectively, indicating broker confidence [7] Growth Drivers - Increased demand for SKYW's older aircraft due to Boeing's production issues is expected to enhance capacity and revenue [10] - The uptick in air travel demand, particularly in leisure travel, is a significant growth driver for SKYW [13] - Lower capital expenditure is anticipated to support SKYW's free cash flow, boosting shareholder returns [10] Challenges and Opportunities - Production delays at Boeing have negatively impacted large airlines, leading to a slowdown in pilot hiring and potentially increasing SKYW's fleet utilization as employees may return to regional airlines [4] - The current supply-chain issues in the industry may provide SKYW with a competitive advantage in staffing and operational efficiency [4]

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]