Yahoo Finance Are Investors Undervaluing SkyWest (SKYW) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is SkyWest (SKYW). SKYW is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.77 right now. For comparison, its industry sports an average P/E of 15.84. SKYW's Forward P/E has been as high as 113.10 and as low as 9.59, with a median of 10.75, all within the past year.
Investors should also recognize that SKYW has a P/B ratio of 1.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.45. SKYW's P/B has been as high as 1.51 and as low as 0.71, with a median of 0.96, over the past year.
Finally, our model also underscores that SKYW has a P/CF ratio of 6.59. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SKYW's current P/CF looks attractive when compared to its industry's average P/CF of 10.34. Over the past 52 weeks, SKYW's P/CF has been as high as 6.95 and as low as 4.35, with a median of 5.41.
Controladora Vuela Compania de Aviacion, B. de C.V. (VLRS) may be another strong Transportation - Airline stock to add to your shortlist. VLRS is a # 1 (Strong Buy) stock with a Value grade of A.
Shares of Controladora Vuela Compania de Aviacion, B. de C.V. currently holds a Forward P/E ratio of 8.50, and its PEG ratio is -2.17. In comparison, its industry sports average P/E and PEG ratios of 15.84 and 0.73.
Over the last 12 months, VLRS's P/E has been as high as 6,243.17, as low as -73,021.84, with a median of 10.77, and its PEG ratio has been as high as 644.96, as low as -7,543.58, with a median of 0.96.
Additionally, Controladora Vuela Compania de Aviacion, B. de C.V. has a P/B ratio of 2.67 while its industry's price-to-book ratio sits at 3.45. For VLRS, this valuation metric has been as high as 7.61, as low as 2.67, with a median of 4.09 over the past year.
These are just a handful of the figures considered in SkyWest and Controladora Vuela Compania de Aviacion, B. de C.V.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SKYW and VLRS is an impressive value stock right now.
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SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS) : Free Stock Analysis Report
