SkyWest (SKYW) Gains But Lags Market: What You Should Know
SkyWest (SKYW) closed at $51.75 in the latest trading session, marking a +0.32% move from the prior day. This move lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 0.34%.
Prior to today's trading, shares of the regional airline had lost 8.14% over the past month. This has lagged the Transportation sector's loss of 1.46% and the S&P 500's gain of 1.83% in that time.
Investors will be hoping for strength from SKYW as it approaches its next earnings release. The company is expected to report EPS of $1.21, up 17.48% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $738.52 million, down 5.73% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.78 per share and revenue of $3.01 billion. These totals would mark changes of +9.06% and -6.65%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SKYW. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SKYW is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, SKYW is currently trading at a Forward P/E ratio of 8.93. This valuation marks a discount compared to its industry's average Forward P/E of 9.52.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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