Should Value Investors Buy SkyWest (SKYW) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.One company to watch right now is SkyWest (SKYW). SKYW is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 10.98, while its industry has an average P/E of 11.94. Over the past year, SKYW's Forward P/E has been as high as 14.41 and as low as 8.62, with a median of 11.05. Another valuation metric that we should highlight is SKYW's P/B ratio of 1.77. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. SKYW's current P/B looks attractive when compared to its industry's average P/B of 3.62. Within the past 52 weeks, SKYW's P/B has been as high as 2.02 and as low as 1.30, with a median of 1.67.Finally, we should also recognize that SKYW has a P/CF ratio of 5.92. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SKYW's current P/CF looks attractive when compared to its industry's average P/CF of 7.87. SKYW's P/CF has been as high as 7.64 and as low as 4.42, with a median of 5.81, all within the past year.Value investors will likely look at more than just these metrics, but the above data helps show that SkyWest is likely undervalued currently. And when considering the strength of its earnings outlook, SKYW sticks out as one of the market's strongest value stocks.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks