SKYW Should I Buy
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SkyWest Inc (SKYW) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is currently in a downtrend with bearish technical indicators, and while the valuation metrics and industry ranking are favorable, the recent financial performance and upcoming earnings expectations suggest limited immediate upside potential. It is better to wait for clearer bullish signals or improved financial trends before considering an entry.
The stock is in a bearish trend with MACD below zero and negatively expanding, RSI indicating oversold conditions at 15.961, and moving averages showing a bearish alignment (SMA_200 > SMA_20 > SMA_5). The price is trading below key support levels, with S1 at 93.339 and S2 at 88.519.
SkyWest operates in the Transportation - Airline industry, which ranks in the top 9% according to Zacks. The forward P/E ratio of 9.52 and PEG ratio of 0.73 indicate the stock is undervalued relative to its industry.
The stock has declined 4.82% in regular market trading and 1.51% in pre-market trading. Analysts expect a 9.5% YoY decline in EPS for the upcoming earnings report. Recent financials show a YoY decline in net income (-6.39%), EPS (-5.56%), and gross margin (-5.34%).
In 2025/Q4, revenue increased by 8.48% YoY to $1.024 billion, but net income dropped by 6.39% YoY to $91.16 million. EPS declined by 5.56% YoY to 2.21, and gross margin fell to 60.06%, down 5.34% YoY.
Analysts expect a slight revenue growth of 3.6% in the upcoming quarter but project a 9.5% YoY decline in EPS. The stock's valuation metrics (P/E and PEG ratios) suggest it is undervalued compared to its industry.
