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Here's Why Investors Should Bet on SkyWest Stock Now
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SkyWest’s (SKYW - Free Report) top line is bolstered by robust air travel demand and consistently high passenger volumes. The company’s efforts to expand its reach are also commendable. Due to these tailwinds, SKYW shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s delve deeper.
SKYW’s Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share has been revised upward by 7.7% over the past 60 days for the current year. For 2026, the consensus mark for earnings per share has moved 7.3% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Robust Price Performance: A look at the company’s price trend reveals that its shares have risen 36.1% over the past year, surpassing the Zacks Transportation – Airline industry’s 19.7% growth.
Image Source: Zacks Investment Research
Positive Earnings Surprise History: SkyWest has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 16.7%.
Solid Zacks Rank: SKYW currently sports a Zacks Rank #1 (Strong Buy).
Bullish Industry Rank: The industry to which SKYW belongs currently has a Zacks Industry Rank of 35 (out of 246). Such a favorable rank places it in the top 14% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group to which it belongs.
A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.
Growth Factors: SKYW’s strong track record of meeting the demands of its major airline partners positions it well for continued success. The impressive revenues from flying agreements, which make up the majority of its revenues, reflect the company’s ability to deliver on its commitments. With the rise in air travel demand and consistently high passenger volumes, SKYW’s top line is expected to remain robust and likely see further growth. This positive trend bodes well for the company’s financial performance in the near future.
SKYW’s efforts to expand its network are commendable. To this end, SkyWest operates a fleet of around 500 aircraft, serving more than 240 destinations across North America. Through partnerships with major carriers, SKYW carried more than 38 million passengers in 2023. The company is also modernizing its fleet, with agreements to operate 278 E175 aircraft by the end of 2026. In February 2024, SkyWest acquired a 25% stake in regional carrier Contour Airlines.
Moreover, SkyWest reached a multi-year contract extension with American Airlines, allowing for a total of 74 CRJ700s under agreement, and took delivery of four new E175 aircraft as part of a previously announced agreement with United. These moves underscore the company’s commitment to expanding its network and enhancing its fleet capabilities.
American Airlines currently carries a Zacks Rank #2 (Buy)
AAL has an expected earnings growth rate of 23.5% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 37.1%. Shares of AAL have risen 25.6% over the past six months.
UAL has an expected earnings growth rate of 22.2% for the current year.
The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average surprise is 22.9%. Shares of UAL have risen 87.2% in the past six months.
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Here's Why Investors Should Bet on SkyWest Stock Now
SkyWest’s (SKYW - Free Report) top line is bolstered by robust air travel demand and consistently high passenger volumes. The company’s efforts to expand its reach are also commendable. Due to these tailwinds, SKYW shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s delve deeper.
SKYW’s Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share has been revised upward by 7.7% over the past 60 days for the current year. For 2026, the consensus mark for earnings per share has moved 7.3% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Robust Price Performance: A look at the company’s price trend reveals that its shares have risen 36.1% over the past year, surpassing the Zacks Transportation – Airline industry’s 19.7% growth.
Image Source: Zacks Investment Research
Positive Earnings Surprise History: SkyWest has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 16.7%.
Solid Zacks Rank: SKYW currently sports a Zacks Rank #1 (Strong Buy).
Bullish Industry Rank: The industry to which SKYW belongs currently has a Zacks Industry Rank of 35 (out of 246). Such a favorable rank places it in the top 14% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group to which it belongs.
A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.
Growth Factors: SKYW’s strong track record of meeting the demands of its major airline partners positions it well for continued success. The impressive revenues from flying agreements, which make up the majority of its revenues, reflect the company’s ability to deliver on its commitments. With the rise in air travel demand and consistently high passenger volumes, SKYW’s top line is expected to remain robust and likely see further growth. This positive trend bodes well for the company’s financial performance in the near future.
SKYW’s efforts to expand its network are commendable. To this end, SkyWest operates a fleet of around 500 aircraft, serving more than 240 destinations across North America. Through partnerships with major carriers, SKYW carried more than 38 million passengers in 2023. The company is also modernizing its fleet, with agreements to operate 278 E175 aircraft by the end of 2026. In February 2024, SkyWest acquired a 25% stake in regional carrier Contour Airlines.
Moreover, SkyWest reached a multi-year contract extension with American Airlines, allowing for a total of 74 CRJ700s under agreement, and took delivery of four new E175 aircraft as part of a previously announced agreement with United. These moves underscore the company’s commitment to expanding its network and enhancing its fleet capabilities.
Other Airline Stocks to Consider
Investors may also consider American Airlines (AAL - Free Report) and United Airlines (UAL - Free Report) .
American Airlines currently carries a Zacks Rank #2 (Buy)
AAL has an expected earnings growth rate of 23.5% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 37.1%. Shares of AAL have risen 25.6% over the past six months.
United Airlines currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
UAL has an expected earnings growth rate of 22.2% for the current year.
The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average surprise is 22.9%. Shares of UAL have risen 87.2% in the past six months.