The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
SkyWest (SKYW) is a stock many investors are watching right now. SKYW is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.40, which compares to its industry's average of 16.54. SKYW's Forward P/E has been as high as 104.60 and as low as 9.16, with a median of 10.72, all within the past year.
Investors should also recognize that SKYW has a P/B ratio of 1.80. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.79. Over the past 12 months, SKYW's P/B has been as high as 2.01 and as low as 0.95, with a median of 1.39.
These are only a few of the key metrics included in SkyWest's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SKYW looks like an impressive value stock at the moment.
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