Trade-Ideas LLC identified

SkyWest

(

SKYW

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified SkyWest as such a stock due to the following factors:

  • SKYW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.8 million.
  • SKYW has traded 203,587 shares today.
  • SKYW is trading at 7.14 times the normal volume for the stock at this time of day.
  • SKYW is trading at a new low 4.16% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on SKYW:

TheStreet Recommends

SkyWest, Inc., through its subsidiaries, operates a regional airline in the United States. It provides scheduled passenger and air freight services with approximately 3,500 total daily departures to various destinations in the United States, Canada, Mexico, and the Caribbean. The stock currently has a dividend yield of 0.8%. SKYW has a PE ratio of 19. Currently there are 3 analysts that rate SkyWest a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for SkyWest has been 596,300 shares per day over the past 30 days. SkyWest has a market cap of $1.0 billion and is part of the services sector and transportation industry. The stock has a beta of 1.58 and a short float of 3.9% with 3.08 days to cover. Shares are up 55.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates SkyWest as a

buy

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, good cash flow from operations, solid stock price performance, impressive record of earnings per share growth and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Airlines industry. The net income increased by 313.6% when compared to the same quarter one year prior, rising from -$14.74 million to $31.48 million.
  • Net operating cash flow has significantly increased by 100.04% to $133.60 million when compared to the same quarter last year. In addition, SKYWEST INC has also vastly surpassed the industry average cash flow growth rate of 44.68%.
  • Powered by its strong earnings growth of 310.34% and other important driving factors, this stock has surged by 129.34% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • SKYWEST INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SKYWEST INC swung to a loss, reporting -$0.48 versus $1.12 in the prior year. This year, the market expects an improvement in earnings ($1.83 versus -$0.48).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.5%. Since the same quarter one year prior, revenues slightly dropped by 3.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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