SkyWest (SKYW) ended the recent trading session at $96.58, demonstrating a -1.8% change from the preceding day's closing price. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, lost 0.8%.
Shares of the regional airline have appreciated by 21.14% over the course of the past month, outperforming the Transportation sector's gain of 2.83%, and the S&P 500's loss of 1.43%.
Analysts and investors alike will be keeping a close eye on the performance of SkyWest in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.85, marking a 2.06% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.11 billion, up 7.62% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.95 per share and revenue of $4.36 billion, which would represent changes of +5.8% and +7.49%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SkyWest. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SkyWest currently has a Zacks Rank of #3 (Hold).
With respect to valuation, SkyWest is currently being traded at a Forward P/E ratio of 8.98. This valuation marks a discount compared to its industry average Forward P/E of 11.65.
It's also important to note that SKYW currently trades at a PEG ratio of 1.38. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 1.13.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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SkyWest, Inc. (SKYW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).