SkyWest (NASDAQ:SKYW) shareholders have returned 104% over the last year

Unless you borrow money to invest, the potential losses are limited. However, if you choose the right company to buy shares in, you can earn more than you can afford to lose. For example SkyWest, Inc. (NASDAQ:SKYW) share price more than doubled in just one year – by 104%. In more good news, the share price is up 8.7% in thirty days. What’s also impressive is that the company’s shares are up 62% in three years, which also makes long-term shareholders happy.

So let’s investigate and see if the company’s long-term performance is in line with the progress of its core business.

See our latest analysis for SkyWest

Although some continue to advocate the efficient markets hypothesis, it has been proven that markets are overly reactive, dynamic systems and investors are not always rational. One imperfect but simple way to check how the market perception of a company has changed is to compare the change in earnings per share (EPS) with the share price movement.

Over the last year, SkyWest increased its earnings per share, moving from a loss to a profit.

When a company has just achieved profitability, earnings per share growth is not always the best way to gauge share price movement.

However, year-over-year revenue growth of 10% would be helpful. Many companies go through a phase where they have to give up some profits to fuel the company’s growth, and sometimes this is the best solution.

The graphic below shows how earnings and revenue have changed over time (unveil the exact values ​​by clicking on the image).

We know SkyWest has improved its performance over the last three years, but what does the future hold? If you’re considering buying or selling SkyWest stock, you should check it out FREE detailed report in your balance sheet.

Another perspective

It’s good to see that SkyWest shareholders have received a total return on their investment of 104% over the last year. That’s better than the 9% annualized return over half a decade, which means the company has been doing better recently. An optimistic person might view the recent improvement in TSR as a sign that the business itself is getting better over time. It’s always interesting to track share price performance over the long term. However, to better understand SkyWest, we need to consider many other factors. For this purpose, you need to be aware of 1 warning sign we noticed thanks to SkyWest.

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Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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This article by Simply Wall St is of a general nature. We comment based on historical data and analyst forecasts, using only an unbiased methodology, and our articles are not intended to provide financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide long-term, focused analysis based on fundamental data. Please note that our analysis may not reflect the latest price-sensitive company announcements or qualitative content. Simply Wall St has no position in any of the stocks mentioned.