SkyWest (SKYW) Stock Sinks As Market Gains: Here's Why

SkyWest (SKYW) closed at $78.63 in the latest trading session, marking a -0.98% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.15%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.17%.

The regional airline's stock has climbed by 3.14% in the past month, exceeding the Transportation sector's loss of 2.15% and lagging the S&P 500's gain of 3.2%.

The upcoming earnings release of SkyWest will be of great interest to investors. On that day, SkyWest is projected to report earnings of $1.70 per share, which would represent year-over-year growth of 385.71%. Our most recent consensus estimate is calling for quarterly revenue of $814.4 million, up 12.23% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.81 per share and a revenue of $3.36 billion, representing changes of +784.42% and +14.58%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for SkyWest. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, SkyWest boasts a Zacks Rank of #1 (Strong Buy).

In terms of valuation, SkyWest is presently being traded at a Forward P/E ratio of 11.66. This represents a premium compared to its industry's average Forward P/E of 8.98.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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