5 Reasons Why Investors Should Buy SkyWest (SKYW) Stock Now
SkyWest, Inc. SKYW is benefiting from its fleet-modernization efforts and shareholder-friendly initiatives.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes SKYW an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse year to date. Shares of SKYW have gained 181.3% so far this year, outperforming the 2% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: SKYW currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Positive Earnings Surprise History: SKYW has an impressive earnings surprise history. The company delivered an earnings surprise of 31.51% in the last four quarters, on average.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 60 days, the Zacks Consensus Estimate for SKYW’s fourth-quarter 2023 earnings has moved up 57.1% year over year. Over the past 60 days, the Zacks Consensus Estimate for SKYW’s 2023 and 2024 earnings has increased 31.5% and 30.7%, year over year, respectively.
Growth Factors:SkyWest's fleet-modernization efforts are commendable. In a bid to modernize its fleet, SkyWest entered into an agreement with Delta to add two E175 aircraft in the fourth quarter of 2023 and one E175 aircraft in 2024. In third-quarter 2023, SKYW inked a deal with United Airlines for 19 new E175 jets under contract. Plane deliveries are scheduled to begin in late 2024 and continue till 2026. SKYW anticipates to take delivery of 23 new E175 aircraft starting in the first quarter of 2024 through 2026. By 2026-end, SkyWest is likely to operate a total of 258 E175 aircraft.
We are impressed by SKYW’s efforts to reward its shareholders through buybacks. To this, SKYW has repurchased 9.6 million shares in the first nine months of 2023. As of Sep 30, 2023, SkyWest had $136 million available under its current share repurchase program.
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Transportation sector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB and ZTO Express (ZTO). Each stock presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Wabtec has an expected earnings growth rate of 22.02% for the current year. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 5.1% over the past 90 days. Shares of WAB have gained 17.3% year to date.
ZTO Express has an expected earnings growth rate of 26.02% for the current year. ZTO delivered a trailing four-quarter earnings surprise of 17.31%, on average.
The Zacks Consensus Estimate for ZTO’s current-year earnings has improved 4% over the past 90 days. Shares of ZTO have declined 17% year to date.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
ZTO Express (Cayman) Inc. (ZTO) : Free Stock Analysis Report
