Trade-Ideas LLC identified

SkyWest

(

SKYW

) as a strong 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 $9.5 million.
  • SKYW has traded 152,291 shares today.
  • SKYW is trading at 4.55 times the normal volume for the stock at this time of day.
  • SKYW is trading at a new high 7.05% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SKYW with the Ticky from Trade-Ideas. See the FREE profile for SKYW NOW at Trade-Ideas

More details on SKYW:

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 0.9%. SKYW has a PE ratio of 19. Currently there are 3 analysts that rate SkyWest a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for SkyWest has been 595,600 shares per day over the past 30 days. SkyWest has a market cap of $909.7 million and is part of the services sector and transportation industry. The stock has a beta of 1.66 and a short float of 4.3% with 4.05 days to cover. Shares are down 10.5% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates SkyWest as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, SKYW's share price has jumped by 75.48%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.4%. Since the same quarter one year prior, revenues slightly dropped by 4.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • SKYWEST INC's earnings per share declined by 10.1% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over 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 ($1.94 versus -$0.48).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Airlines industry and the overall market, SKYWEST INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for SKYWEST INC is rather low; currently it is at 18.25%. Regardless of SKYW's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SKYW's net profit margin of 4.56% is significantly lower than the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.