5 Reasons Why Investors Should Invest in SkyWest (SKYW) Stock
SkyWest, Inc. (SKYW) is benefiting from its fleet-modernization efforts and a fall in operating expenses.
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 151% so far this year, outperforming the 3% loss of the industry it belongs to.
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Solid Zacks Rank: SKYW has a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities. Thus, the company is a compelling 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 third-quarter 2023 earnings has surged more than 100% year over year. Over the past 60 days, the Zacks Consensus Estimate for SKYW’s 2023 and 2024 earnings has increased more than 100% and 23.2%, 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. It also anticipates adding one E175 aircraft in 2025 under a flying contract with Alaska Airlines. By 2025-end, SkyWest is scheduled to operate a total of 239 E175 aircraft.
A fall in operating expenses is another tailwind for SkyWest. In second-quarter 2023, the metric dipped 2.4% to $693.8 million due to a decline in operating costs. Low operating expenses boost bottom-line results.
Other Stocks to Consider
Some other better-ranked stocks from the Zacks Transportation sector are GATX Corporation (GATX) and Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB). Each of these companies presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
GATX has an expected earnings growth rate of 14.33% for the current year. GATX delivered a trailing four-quarter earnings surprise of 17.30%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 6% year to date.
Wabtec has an expected earnings growth rate of 16.87% for the current year. WAB delivered a trailing four-quarter earnings surprise of 3.42%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 4.9% over the past 90 days. Shares of WAB have gained 5.9% year to date.
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SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
GATX Corporation (GATX) : Free Stock Analysis Report
