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. While the company shows resilience to higher fuel prices and has a potential for 6.77% growth in the next month, the lack of strong positive catalysts, declining financial performance, and neutral trading sentiment suggest holding off on immediate investment.
The MACD is positive but contracting, RSI is neutral at 50.575, and moving averages are converging, indicating no clear trend. The stock is trading near its pivot point of 95.034, with resistance at 99.698 and support at 90.37.
SkyWest has among the least sensitivity to higher fuel prices, which could provide a relative advantage in the airline sector.
Declining financial metrics in Q4 2025, including a drop in net income (-6.39% YoY), EPS (-5.56% YoY), and gross margin (-5.34% YoY). Analysts have lowered the price target from $112 to $101, citing downside risks to estimates.
In Q4 2025, revenue increased by 8.48% YoY to $1.02 billion, but net income dropped by 6.39% YoY to $91.16 million, EPS fell by 5.56% YoY to 2.21, and gross margin decreased to 60.06%, down 5.34% YoY.
Citi analysts maintain a Neutral rating with a reduced price target of $101, down from $112, citing downside risks to estimates due to higher fuel prices. However, they note that SkyWest has less sensitivity to fuel price increases compared to peers.
