Wall Street Bulls Look Optimistic About SkyWest (SKYW): Should You Buy?

Core Viewpoint - The average brokerage recommendation (ABR) for SkyWest (SKYW) is 1.75, indicating a consensus leaning towards a "Buy" rating, but caution is advised as brokerage recommendations may not reliably predict stock performance [2][3]. Group 1: Brokerage Recommendations - SkyWest has an ABR of 1.75, which is between "Strong Buy" and "Buy," with 50% of recommendations being "Strong Buy" and 25% being "Buy" [2]. - Brokerage analysts tend to exhibit a strong positive bias in their ratings, often issuing five "Strong Buy" recommendations for every "Strong Sell" [4][8]. - The ABR is based solely on brokerage recommendations and may not reflect the actual price movement of the stock [7][10]. Group 2: Zacks Rank vs. ABR - The Zacks Rank, which is a quantitative model based on earnings estimate revisions, is a more reliable indicator of near-term stock performance compared to the ABR [6][9]. - The Zacks Rank is updated more frequently and reflects changes in earnings estimates, making it a timely tool for predicting future price movements [10]. - SkyWest currently holds a Zacks Rank of 3 (Hold), indicating a cautious outlook despite the positive ABR [12]. Group 3: Earnings Estimates - The Zacks Consensus Estimate for SkyWest's earnings remains unchanged at $6.88 for the current year, suggesting stability in analysts' views on the company's earnings prospects [11]. - The lack of change in the consensus estimate may lead to SkyWest performing in line with the broader market in the near term [11].