Here's Why Investors Should Buy SkyWest (SKYW) Stock Now
SkyWest, Inc. SKYW performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s take a look at the factors that make the stock a strong investment pick at the moment.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 181.7% in the past year against the industry’s1.1% decline.
Image Source: Zacks Investment Research
Solid Zacks Rank: SkyWest presently sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment.
Northward Estimate Revisions: The positivity surrounding the stock is evident from the fact that the Zacks Consensus Estimate for 2023 earnings has improved over the past 90 days. The Zacks Consensus Estimate for 2023 earnings has moved north 38.8% in the past 90 days.
Positive Earnings Surprise History: SkyWest has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, delivering an average surprise of 32.57%.
Driving 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 in 2024. In third-quarter 2023, SKYW inked a deal with United Airlines for 19 new E175 jets.
The plane deliveries are scheduled to begin in late 2024 and continue till 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. The company has repurchased 9.6 million shares in the first nine months of 2023.
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 GATX Corporation GATX. 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 22.43% for 2023. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
The Zacks Consensus Estimate for WAB’s 2023 earnings has improved 4.9% over the past 90 days. Shares of WAB have gained 22.1% in the past year.
GATX has an expected earnings growth rate of 14.33% for 2023. GATX delivered a trailing four-quarter earnings surprise of 16.49%, on average.
The Zacks Consensus Estimate for GATX’s 2023 earnings has remained unchanged over the past 90 days. Shares of GATX have gained 6.6% in the past year.
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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
