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What Is SkyWest, Inc.’s (NASDAQ:SKYW) Share Price Doing?

SkyWest, Inc. (NASDAQ:SKYW), which is in the airlines business, and is based in United States, saw a decent share price growth in the teens level on the NasdaqGS over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on SkyWest’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for SkyWest

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What is SkyWest worth?

Great news for investors – SkyWest is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $88.28, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that SkyWest’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of SkyWest look like?

NasdaqGS:SKYW Future Profit January 16th 19
NasdaqGS:SKYW Future Profit January 16th 19

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for SkyWest, at least in the near future.

What this means for you:

Are you a shareholder? Although SKYW is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to SKYW, or whether diversifying into another stock may be a better move for your total risk and return.

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Are you a potential investor? If you’ve been keeping tabs on SKYW for some time, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on SkyWest. You can find everything you need to know about SkyWest in the latest infographic research report. If you are no longer interested in SkyWest, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.