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Is SkyWest (SKYW) a Great Value Stock Right Now?

Zacks Equity Research

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is SkyWest (SKYW). SKYW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

We should also highlight that SKYW has a P/B ratio of 1.37. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.33. Within the past 52 weeks, SKYW's P/B has been as high as 1.60 and as low as 1.15, with a median of 1.45.

Finally, our model also underscores that SKYW has a P/CF ratio of 4.27. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.42. Over the past 52 weeks, SKYW's P/CF has been as high as 4.96 and as low as 2.85, with a median of 4.46.

These figures are just a handful of the metrics value investors tend to look at, but they help show that SkyWest is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SKYW feels like a great value stock at the moment.


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