JetBlue Airways Corporation Stock Upgraded (JBLU)

NEW YORK ( TheStreet) -- JetBlue Airways Corporation (Nasdaq: JBLU) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.4%. Since the same quarter one year prior, revenues rose by 18.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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 900.0% when compared to the same quarter one year prior, rising from $3.00 million to $30.00 million.
  • Net operating cash flow has increased to $292.00 million or 26.40% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -21.12%.
  • JETBLUE AIRWAYS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, JETBLUE AIRWAYS CORP reported lower earnings of $0.28 versus $0.31 in the prior year. This year, the market expects an improvement in earnings ($0.55 versus $0.28).

JetBlue Airways Corporation provides passenger air transportation services in the United States. The company has a P/E ratio of 14.6, below the average transportation industry P/E ratio of 15 and below the S&P 500 P/E ratio of 17.7. JetBlue Airways has a market cap of $1.49 billion and is part of the services sector and transportation industry. Shares are up 0.9% year to date as of the close of trading on Thursday.

You can view the full JetBlue Airways Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

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