SkyWest, Inc. SKYW performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.

Let’s take a look at the factors that make the stock a strong investment pick at the moment.

An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 112.3% so far this year outperforming the industry’s 34.8% growth.

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Solid Rank & VGM Score: SKYW sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.

Northward Estimate Revisions: The positivity surrounding the stock is evident from the fact that the Zacks Consensus Estimate for fourth-quarter 2024 earnings has improved 1.7% over the past 90 days. The Zacks Consensus Estimate for full-year 2024 earnings has increased 4.1% in the past 90 days.

Positive Earnings Surprise History: SkyWest has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 79.12%.

Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For fourth-quarter 2024, SKYW's earnings are expected to grow more than 100% year over year. For full-year 2024, SKYW's earnings are expected to grow more than 100% year over year.

Driving Factors:  We are impressed by SKYW's efforts to reward its shareholders through buybacks. Per the share repurchase program authorized by SKYW’s board of directors in May 2023, SKYW repurchased 217,000 shares of common stock for $16.3 million during third-quarter 2024. As of Sept. 30, 2024, SkyWest had $53 million available under its current share repurchase program.

SkyWest's fleet-modernization efforts are commendable. SKYW has fleet-related agreements with other heavyweight airlines like United Airlines and Alaska Airlines. By 2026-end, SKYW is scheduled to operate 278 E175 aircraft. In February 2024, SkyWest announced that it had acquired a 25% ownership stake in Contour Airlines, a regional carrier.

Concurrent with its third-quarter 2024 results, SkyWest also announced that it had inked a deal with United Airlines to place 40 CRJ550s under a multi-year contract. Per the deal, SKYW will purchase11 used CRJ550s and convert 29 of its CRJ700s to CRJ550s.

Other Stocks to Consider

Some other top-ranked stocks from the Zacks Transportation sector are C.H. Robinson Worldwide (CHRW) and Wabtec Corporation WAB. Each stock presently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

CHRW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 10.29%.

CHRW has an expected earnings growth rate of 32.42% for 2024. The Zacks Consensus Estimate for CHRW 2024 earnings has been revised 7.3% upward over the past 90 days. Shares of CHRW have gained 26.2% so far this year.

WAB has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 9.46%.

The Zacks Consensus Estimate for WAB’s 2024 earnings has been revised 2.5% upward over the past 90 days. WAB has an expected earnings growth rate of 28.55% for 2024. Shares of WAB have gained 58.5% so far this year.

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