SkyWest stock moves: what recent performance and earnings growth suggest

SkyWest (SKYW) shares have been moving on a mix of recent price swings and improving fundamentals, with the stock near $100 and annual revenue and net income growth highlighting the airline's current earnings profile.

Recent trading has been a bit choppy, with a 2.0% 1 day share price return contrasting with weaker 30 day and year to date share price returns. At the same time, the very large 3 year total shareholder return suggests earlier momentum now looks to be cooling.

If SkyWest has you looking at the broader aviation space, this could be a good moment to scan aerospace and defense stocks for other transportation related ideas on your radar.

SkyWest is trading around $100, with annual revenue and net income growth, a value score of 6, and market estimates that sit above the current price. So is the stock still cheap, or is the market already pricing in future growth?

Most Popular Narrative: 23.6% Undervalued

On this narrative, SkyWest's fair value of $131.80 sits well above the last close near $100, which puts a spotlight on the earnings assumptions behind it.

Fleet modernization through significant orders of new, fuel-efficient E175 aircraft under long-term, flexible contracts is expected to improve cost structure, enhance asset utilization, and boost net margins as newer planes replace older, less efficient models and support new multiyear agreements with major carriers.

Want to see what kind of revenue run rate and profit margins are built into that view? The narrative leans on steady growth, firm contracts, and a richer earnings multiple. Curious how that all ties together into a higher fair value than many airlines?

Result: Fair Value of $131.80 (UNDERVALUED)

However, any upside case still runs into real hurdles, including the ongoing global pilot shortage and SkyWest's reliance on big airline partners for key capacity contracts.

Build Your Own SkyWest Narrative

If you see the numbers differently or prefer to test your own assumptions, you can build a custom view in just a few minutes, starting with Do it your way.

A great starting point for your SkyWest research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If SkyWest has sharpened your interest, do not stop here. The right watchlist often starts with a few focused ideas you actively choose to investigate.

• Start building a watchlist of lower priced companies that still meet solid financial standards by scanning these 3539 penny stocks with strong financials for potential additions.
• Spot potential opportunities among companies the market prices below their estimated cash flow value by checking out these 881 undervalued stocks based on cash flows for ideas that fit your approach.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.