In the latest trading session, SkyWest (SKYW) closed at $101.26, marking a +1.06% move from the previous day. On the other hand, the Dow registered a loss of 0.36%, and the technology-centric Nasdaq increased by 0.45%.
The stock of regional airline has fallen by 1.46% in the past month, leading the Transportation sector's loss of 6.89% and undershooting the S&P 500's gain of 1.27%.
The investment community will be closely monitoring the performance of SkyWest in its forthcoming earnings report. The company is forecasted to report an EPS of $3.13, showcasing a 11.39% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.14 billion, showing a 8.93% escalation compared to the year-ago quarter.
SKYW's full-year Zacks Consensus Estimates are calling for earnings of $10.94 per share and revenue of $4.36 billion. These results would represent year-over-year changes of +5.7% and +7.48%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for SkyWest. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.47% downward. SkyWest is currently a Zacks Rank #3 (Hold).
In the context of valuation, SkyWest is at present trading with a Forward P/E ratio of 9.16. Its industry sports an average Forward P/E of 11.88, so one might conclude that SkyWest is trading at a discount comparatively.
It's also important to note that SKYW currently trades at a PEG ratio of 1.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Transportation - Airline industry stood at 0.92 at the close of the market yesterday.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 233, which puts it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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SkyWest, Inc. (SKYW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).