Here’s Why Putting Your Money in SkyWest Shares Makes Sense at This Moment

SkyWest: Strong Performance and Growth Outlook

SkyWest (SKYW) continues to benefit from high demand and solid operational execution. The airline’s ongoing expansion efforts are promising, and these positive factors have contributed to the stock’s notable gains. If you haven’t yet capitalized on SKYW’s upward momentum, now may be an opportune time to consider it.

Key Drivers Behind SKYW’s Momentum

• Upward Earnings Revisions: Over the past two months, analyst projections for SKYW’s second-quarter 2026 earnings per share have increased by 8.2%. Estimates for full-year 2026 and 2027 have also risen by 3.2% and 3.8%, respectively, reflecting growing confidence among analysts.
• Impressive Stock Performance: In the last month, SKYW’s share price has climbed 6.1%, outperforming the Transportation – Airline sector, which saw a 0.3% decline.

Source: Zacks Investment Research

• Consistent Earnings Surprises: SkyWest has surpassed analyst earnings expectations in three of the past four quarters, with an average positive surprise of 12.75%.
• Favorable Zacks Rank: The stock currently holds a Zacks Rank #2 (Buy), indicating a positive outlook.
• Strong Industry Position: SkyWest’s industry is ranked 28 out of 243 by Zacks, placing it in the top 12%. Historically, stocks in strong industries tend to outperform, even if the individual stock is only average.

It’s important to consider industry trends, as a solid sector can help lift even moderate performers above their peers in weaker industries.

Growth Initiatives and Operational Strength

SkyWest is making significant strides in operational growth and reliability, driven by fleet expansion and robust performance indicators. The airline is reinforcing its presence in the regional jet market by rapidly growing its E175 fleet.

By the close of 2028, SKYW aims to operate nearly 300 E175 aircraft, supported by collaborations with major U.S. airlines and the scheduled addition of 44 more E175s between 2028 and 2032. This strategy enables SkyWest to pursue new routes and adapt to evolving partner needs, highlighting the E175’s central role in its long-term plans. In the fourth quarter of 2025, the company added five E175s, bringing the total to 270.

Operationally, SkyWest achieved notable year-over-year improvements in the fourth quarter of 2025. Total block hours increased by 5.3%, thanks to better captain availability, higher fleet utilization, and steady demand across all aircraft types. Departures rose by 2.9%, and the airline maintained an impressive 99.9% adjusted flight completion rate, underscoring its reliability and operational excellence.

Other Transportation Stocks Worth Watching

For those interested in the transportation sector, Allegiant (ALGT) and Southwest Airlines (LUV) are also noteworthy.

• Allegiant (ALGT): Currently holds a Zacks Rank #1. The company is projected to achieve earnings growth exceeding 100% this year and has beaten earnings estimates in three of the last four quarters, with an average surprise of 23.6%.
• Southwest Airlines (LUV): Also carries a Zacks Rank #1. LUV is expected to deliver over 100% earnings growth this year and has outperformed estimates in three of the past four quarters, with an average beat of 253.9%.

Top Semiconductor Stock Identified by Zacks

A lesser-known company in the semiconductor space is poised for significant growth, offering products not produced by industry giants like NVIDIA. With strong earnings and a growing customer base, this company is well-positioned to benefit from surging demand in Artificial Intelligence, Machine Learning, and the Internet of Things. The global semiconductor market is forecasted to grow from $452 billion in 2021 to $971 billion by 2028.

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