Is SkyWest (SKYW) a Great Value Stock Right Now?

Core Insights - The article emphasizes the importance of value investing, highlighting the identification of undervalued companies through various valuation metrics [2][3] - Zacks has developed a Style Scores system to categorize stocks, with a focus on those that have high Zacks Ranks and "A" grades in the Value category [3] Company Analysis: SkyWest (SKYW) - SkyWest (SKYW) holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential as a value stock [4] - The stock has a P/E ratio of 11.08, significantly lower than the industry average of 16.57, suggesting it may be undervalued [4] - Over the past 12 months, SKYW's Forward P/E has fluctuated between 9.16 and 14.41, with a median of 11.06 [4] - SKYW's P/CF ratio is 5.96, compared to the industry's average of 12, indicating a solid cash outlook [5] - The P/CF ratio has ranged from 5.04 to 7.64 over the last year, with a median of 6.31 [5] Company Analysis: United Airlines (UAL) - United Airlines (UAL) also holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, making it a strong candidate for value investment [6] - The stock is currently trading at a forward earnings multiple of 8.08, which is lower than the industry average P/E of 16.57 [6] - UAL's PEG ratio stands at 0.69, compared to the industry's average of 0.83, indicating potential undervaluation [6] - Over the last 12 months, UAL's P/E has varied from 3.63 to 9.45, with a median of 5.01 [7] - The P/B ratio for UAL is 2.76, significantly lower than the industry's average of 5.15, further supporting its value proposition [7] Conclusion - Both SkyWest and United Airlines exhibit strong value characteristics, with favorable P/E, P/CF, and PEG ratios compared to their respective industry averages, indicating they are likely undervalued at present [8]