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Should Value Investors Buy SkyWest (SKYW) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

SkyWest (SKYW - Free Report) is a stock many investors are watching right now. SKYW is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.32, which compares to its industry's average of 15.46. SKYW's Forward P/E has been as high as 104.60 and as low as 9.59, with a median of 10.75, all within the past year.

Investors should also recognize that SKYW has a P/B ratio of 1.57. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SKYW's current P/B looks attractive when compared to its industry's average P/B of 3.40. SKYW's P/B has been as high as 1.57 and as low as 0.71, with a median of 1, over the past year.

Finally, investors should note that SKYW has a P/CF ratio of 7.01. 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. SKYW's current P/CF looks attractive when compared to its industry's average P/CF of 10.01. Within the past 12 months, SKYW's P/CF has been as high as 7.01 and as low as 4.35, with a median of 5.64.

Controladora Vuela Compania de Aviacion, B. de C.V. (VLRS - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. VLRS is a # 1 (Strong Buy) stock with a Value grade of A.

Shares of Controladora Vuela Compania de Aviacion, B. de C.V. are currently trading at a forward earnings multiple of 8.83 and a PEG ratio of -2.17 compared to its industry's P/E and PEG ratios of 15.46 and 0.73, respectively.

VLRS's Forward P/E has been as high as 6,243.17 and as low as -73,021.84, with a median of 10.77. During the same time period, its PEG ratio has been as high as 644.96, as low as -7,543.58, with a median of 0.96.

Additionally, Controladora Vuela Compania de Aviacion, B. de C.V. has a P/B ratio of 2.80 while its industry's price-to-book ratio sits at 3.40. For VLRS, this valuation metric has been as high as 7.13, as low as 2.61, with a median of 3.92 over the past year.

These are just a handful of the figures considered in SkyWest and Controladora Vuela Compania de Aviacion, B. de C.V.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SKYW and VLRS is an impressive value stock right now.


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