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NEW YORK (TheStreet) -- Shares of JetBlue Airways (JBLU) - Get JetBlue Airways Corporation Report are lower by 0.58% to $20.66 in early afternoon trading on Tuesday, after finishing Monday in the green following reports that the airline has made a bid to acquire rival Virgin America (VA).

Alaska Air (ALK) has also made a bid for Virgin America and talks between the airline and the two suitors are ongoing.

A deal could be announced as early as next week, sources told Bloomberg.

"If the company were to sell itself, JetBlue would make the most sense from an aircraft, network and product offering perspective," Cowen & Co. analyst Helane Becker said in a report, Bloomberg added.

If JetBlue were to acquire Virgin America its presence on the West Coast would be expanded and include Los Angeles and San Francisco.

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TheStreet Recommends

Separately, TheStreet Ratings has set a "buy" rating and a score of A- on JetBlue Airways stock. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that TheStreet Ratings covers.

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 the company may harbor some minor weaknesses, TheStreet Ratings feels they are unlikely to have a significant impact on results.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: JBLU

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