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Here's Why Investors Should Bet on SkyWest Stock Right Now

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SkyWest’s (SKYW - Free Report) top line is bolstered by the company’s robust ability to meet the increased air travel demand scenario. SkyWest’s efforts to expand its fleet 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 2.2% over the past 60 days for the current year. For 2026, the consensus mark for earnings per share has moved 2.2% 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 33.6% over the past year, surpassing the  Zacks Transportation – Airline industry’s 41.1% growth.

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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 carries a Zacks Rank #2 (Buy).

Bullish Industry Rank: The industry to which SKYW belongs currently has a Zacks Industry Rank of 80 (out of 245). Such a favorable rank places it in the top 33% 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 consistently meets the demands of its major airline partners, reinforcing its position for long-term success. The company generates strong revenues primarily from its flying agreements, showcasing its reliability and commitment to delivering results. As air travel demand rises and passenger volumes remain high, SKYW is set to maintain robust revenue growth. This upward trend points to a strong financial outlook for the company in the near future.

SKYW's commitment to expansion and modernization is commendable and evident in its strategic fleet and network initiatives. Operating around 500 aircraft across more than 240 destinations, the airline continues to strengthen regional connectivity. Its plan to operate 278 E175 aircraft by the end of 2026, along with acquiring a 25% stake in Contour Airlines, underscores its focus on growth and efficiency. Additionally, the multi-year contract extension with American Airlines for a total of 74 CRJ700s and the delivery of four new E175 aircraft under its agreement with United reinforce its strong industry position. These efforts solidify SKYW’s long-term stability and competitiveness in the evolving aviation market.

Other Stocks to Consider

Investors interested in the Transportationsector may also consider Frontier Group (ULCC - Free Report) and Allegiant (ALGT - Free Report) .

Frontier Group currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company has an expected earnings growth rate of more than 300% for the current year.

ULCC has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average surprise is 1.1%.

Allegiant currently carries a Zacks Rank of 2. ALGT has an expected earnings growth rate of more than 200% 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 31.3%.


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Allegiant Travel Company (ALGT) - free report >>

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Frontier Group Holdings, Inc. (ULCC) - free report >>

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