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SkyWest (SKYW) Soars 6.4%: Is Further Upside Left in the Stock?

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SkyWest (SKYW - Free Report) shares ended the last trading session 6.4% higher at $79.41. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.9% loss over the past four weeks.

SkyWest is the largest regional airline in The United States. The company is benefiting from upbeat in air-travel demand, favorable pricing and low operating expenses. Driven by these tailwinds, SKYW has performed well on a year-to-date basis gaining 52.1%.

This regional airline is expected to post quarterly earnings of $1.70 per share in its upcoming report, which represents a year-over-year change of +385.7%. Revenues are expected to be $814.4 million, up 12.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For SkyWest, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SKYW going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

SkyWest is part of the Zacks Transportation - Airline industry. American Airlines (AAL - Free Report) , another stock in the same industry, closed the last trading session 0.3% higher at $11.53. AAL has returned -17% in the past month.

For American Airlines, the consensus EPS estimate for the upcoming report has changed -18.8% over the past month to $1.18. This represents a change of -38.5% from what the company reported a year ago. American Airlines currently has a Zacks Rank of #3 (Hold).


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