SKYW:NASDAQSkyWest, Inc. Analysis
Data as of 2026-06-15 - not real-time
$91.75
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
SkyWest trades at roughly $91.75, just below the computed resistance of $91.94 and above the short‑term 20‑day SMA, while the 50‑day and 200‑day SMAs remain higher, indicating a near‑term bearish bias despite a bullish MACD histogram. Valuation metrics are compelling: a trailing P/E near 9x versus an industry average of over 30x and a price‑to‑sales under 1.0 suggest the stock is significantly undervalued. Fundamentally, revenue growth of about 7% and operating margins above 12% support earnings stability, yet the balance sheet is leveraged with a debt‑to‑equity around 91 and cash covering only ~25% of total debt. Volume is on the rise, the 30‑day volatility exceeds 40%, and beta is 1.5, pointing to heightened price swings. Analyst consensus is a strong‑buy with a median price target near $128, implying upside potential of roughly 30% from current levels. Recent news offers no material catalyst; a brief dip to $83.54 was noted but did not alter the broader outlook. Overall, the combination of deep valuation discounts, solid profitability, and strong analyst sentiment outweighs the elevated volatility and leverage concerns.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price hovering just below resistance with bearish SMA alignment
- Bullish MACD histogram indicating possible short‑term bounce
- Elevated volatility and beta increasing downside risk
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Undervaluation relative to industry peers (low P/E, low P/S)
- Strong operating margins and consistent revenue growth
- Analyst consensus of strong‑buy and high median price target
Long Term
> 3 yearsPositive
Model confidence: 7/10
Key Factors
- Potential upside to median target price (~$128) representing >30% upside
- Stable cash flow generation despite leverage
- Long‑term industry recovery prospects and fleet scale
Key Metrics & Analysis
Financial Health
Revenue Growth6.80%
Profit Margin10.42%
P/E Ratio8.8
ROE16.50%
ROA5.21%
Debt/Equity90.66
P/B Ratio1.3
Op. Cash Flow$913.8M
Free Cash Flow$51.6M
Industry P/E30.6
Technical Analysis
TrendBearish
RSI61.4
Support$77.89
Resistance$91.94
MA 20$84.51
MA 50$87.54
MA 200$97.60
MACDBullish
VolumeIncreasing
Fear & Greed Index89.86
Valuation
Target Price$121.50
Upside/Downside32.43%
GradeUndervalued
TypeBlend
Risk Assessment
Beta1.50
Volatility43.51%
Sector RiskHigh
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.