Here's Why You Should Add SkyWest Stock to Your Portfolio Now

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]