Watch Out: Barbarians At The Gate For JetBlue Airways (JBLU)
Trade-Ideas LLC identified
(
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified JetBlue Airways as such a stock due to the following factors:
- JBLU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $119.5 million.
- JBLU has traded 3.3 million shares today.
- JBLU traded in a range 210.1% of the normal price range with a price range of $1.02.
- JBLU traded above its daily resistance level (quality: 5 days, meaning that the stock is crossing a resistance level set by the last 5 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on JBLU:
JetBlue Airways Corporation, a passenger carrier company, provides air transportation services. As of December 31, 2014, the company operated a fleet of 25 Airbus A321 aircrafts, 130 Airbus A320 aircrafts, and 60 Embraer E190 aircrafts. JBLU has a PE ratio of 8. Currently there are 6 analysts that rate JetBlue Airways a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for JetBlue Airways has been 6.2 million shares per day over the past 30 days. JetBlue Airways has a market cap of $5.7 billion and is part of the services sector and transportation industry. The stock has a beta of 0.59 and a short float of 4.6% with 2.06 days to cover. Shares are down 23.7% year-to-date as of the close of trading on Monday.
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Analysis:
rates JetBlue Airways as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 6.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- JETBLUE AIRWAYS CORP has improved earnings per share by 47.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, JETBLUE AIRWAYS CORP increased its bottom line by earning $1.98 versus $1.19 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $1.98).
- 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 45.3% when compared to the same quarter one year prior, rising from $137.00 million to $199.00 million.
- 43.69% is the gross profit margin for JETBLUE AIRWAYS CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.31% is above that of the industry average.
- Net operating cash flow has increased to $585.00 million or 10.79% when compared to the same quarter last year. Despite an increase in cash flow, JETBLUE AIRWAYS CORP's average is still marginally south of the industry average growth rate of 12.19%.
- You can view the full JetBlue Airways Ratings Report.
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