Why JetBlue Airways (JBLU) Stock is Slipping Today

JetBlue Airways (JBLU) stock
By Amanda Schiavo ,

NEW YORK (TheStreet) -- Shares of JetBlue Airways (JBLU) - Get Report are down by 1.83% to $24.75 in early afternoon trading on Monday, as airline stocks struggle in the wake of the terrorist attacks in Paris on Friday evening.

European stocks closed mostly in the green on Monday, however the travel sector tanked as a result of Friday's events.

"If there is something which can shake consumer confidence, it is certainly...safety concerns and geopolitical situations," AvaTrade chief market analyst Naeem Aslam said in a note, MarketWatch reports.

The attacks, carried out by ISIS, resulted in the deaths of 132 people, including an American college student from California. The attackers carried out assaults in six locations across Paris using suicide bombs and guns.

More than 350 people were injured.

The suspected mastermind behind the attack has been identified by French officials as Belgian national Abdelhamid Abaaoud, USA Today reports.

Separately, TheStreet Ratings team rates JETBLUE AIRWAYS CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate JETBLUE AIRWAYS CORP (JBLU) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, expanding profit margins, good cash flow from operations and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 5.8%. Since the same quarter one year prior, revenues rose by 10.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • JETBLUE AIRWAYS CORP reported significant earnings per share improvement 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 $1.19 versus $0.51 in the prior year. This year, the market expects an improvement in earnings ($1.92 versus $1.19).
  • 40.96% is the gross profit margin for JETBLUE AIRWAYS CORP which we consider to be strong. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, JBLU's net profit margin of 11.73% significantly trails the industry average.
  • Net operating cash flow has significantly increased by 120.76% to $404.00 million when compared to the same quarter last year. Despite an increase in cash flow, JETBLUE AIRWAYS CORP's cash flow growth rate is still lower than the industry average growth rate of 136.48%.
  • Powered by its strong earnings growth of 141.66% and other important driving factors, this stock has surged by 105.58% 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.
  • You can view the full analysis from the report here: JBLU

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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