JetBlue (JBLU) Stock Continued to Rise Following October Ridership Increases

NEW YORK (TheStreet) -- JetBlue Airways (JBLU) shares closed trading up 2.79% to $12.72 on Tuesday, continuing to climb a day after the airline revealed its October ridership numbers. 

The company reported a 10.4% increase in airline traffic over the same period last year, while consolidated capacity was also up 7.6% over the previous year during the month, the ninth consecutive month of growth the airline has experienced.

For the year the company reported a 5.1% increase in airline traffic and a 4.7% increase in consolidated capacity. 

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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 a number of strengths, 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 attractive valuation levels. 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 45.04% 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 ($0.67 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 27.2%. 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.
  • You can view the full analysis from the report here: JBLU Ratings Report
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