JetBlue (JBLU) Stock Gains On Expected Thanksgiving Holiday Passenger Bump

NEW YORK (TheStreet) -- JetBlue (JBLU) shares are up 4.6% to $12.69 following a forecast that U.S. airlines will experience a 1.5% increase in flyers during the Thanksgiving holiday season this year.

The trade group Airlines for America said that U.S. airlines will ferry 24.6 million passengers during the 12-day period stretching from from November 21 through December 2, with the busiest day being November 30, the Sunday after Thanksgiving.

Airlines for America expects there to be a daily increase of 31,000 more airline passengers each day during the holiday season this year.

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TheStreet has further coverage of JetBlue stock's movement today here.

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

"We rate JETBLUE AIRWAYS CORP (JBLU) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."

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

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 55.06% over the past year, a rise that has exceeded that of the S&P 500 Index. 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 has improved earnings per share by 14.3% 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 ($0.68 versus $0.51).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Airlines industry average. The net income increased by 11.3% when compared to the same quarter one year prior, going from $71.00 million to $79.00 million.
  • JBLU's revenue growth trails the industry average of 33.0%. Since the same quarter one year prior, revenues slightly increased by 6.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.99, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • You can view the full analysis from the report here: JBLU Ratings Report
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