SkyWest Looks Tempting Before Q3 Earnings Release

(12min)

Summary

  • SkyWest's strong Q2 performance, fleet expansion, and cost control indicate significant growth potential, justifying a "Buy" rating for the medium term.
  • SKYW's robust balance sheet, declining debt, and strategic fleet investments position it well for future growth and shareholder value creation.
  • Despite industry volatility, SkyWest's focus on underserved markets and improving partnerships should drive long-term value, with Q3 results likely exceeding expectations.
  • With an EV/EBITDA of 6.8x and an estimated 41% undervaluation, SkyWest offers substantial upside potential, making it a compelling investment opportunity.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »
Aerial shot showing an aircraft shadow flying over an idyllic beach scene, Barbados

Abstract Aerial Art

My Thesis

According to the latest 10-Q, SkyWest, Inc. (NASDAQ:SKYW) is a $3.8-billion market cap regional airline operating company based in Saint George, Utah, founded in 1972. The firm operates 2 operating businesses: SkyWest Airlines and SkyWest Leasing. It not only flies, but also rents

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This article was written by

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Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.

He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SKYW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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