JetBlue Airways (JBLU) In A Perilous Reversal

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified JetBlue Airways ( JBLU) as a "perilous reversal" (up big yesterday but down big today) 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 $103.5 million.
  • JBLU has traded 173,429 shares today.
  • JBLU is down 4.1% today.
  • JBLU was up 8.7% yesterday.

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More details on JBLU:

JetBlue Airways Corporation, a passenger carrier company, provides air transportation services in the United States, the Caribbean, and Latin America. As of December 31, 2013, it operated a fleet of 4 Airbus A321 aircraft, 130 Airbus A320 aircraft, and 60 EMBRAER 190 aircraft. JBLU has a PE ratio of 9.6. Currently there are 5 analysts that rate JetBlue Airways a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for JetBlue Airways has been 7.8 million shares per day over the past 30 days. JetBlue Airways has a market cap of $2.9 billion and is part of the services sector and transportation industry. The stock has a beta of 0.53 and a short float of 23.7% with 4.76 days to cover. Shares are up 10.2% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates JetBlue Airways as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 518.18% and other important driving factors, this stock has surged by 60.36% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • 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 $0.51 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($0.69 versus $0.51).
  • 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 538.9% when compared to the same quarter one year prior, rising from $36.00 million to $230.00 million.
  • The revenue growth significantly trails the industry average of 44.7%. Since the same quarter one year prior, revenues rose by 11.8%. Growth in the company's revenue appears to have helped boost the earnings per share.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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