NEW YORK (TheStreet) -- JetBlue Airways (JBLU) shares are up 3.07% to $20.16 in trading on Wednesday as falling oil prices prop up the airline sector today.
Industry standard Brent crude for July delivery is down 2.12% to $62.37 per barrel, while West Texas crude for July delivery is down 0.67% to $57.64 per barrel.
Earlier today analysts at Credit Suisse wrote a note advising investors to take advantage of excessively speculative nature of the oil industry that is in the midst of a nearly 12 month long downturn.
"We note that speculative positions in oil are excessive and appear to have peaked. Ordinarily, this leads to a fall in the oil price. Additionally, if the oil price rose significantly from here it would threaten Saudi Arabia's market share strategy(which it implemented at an $80p/b oil price) especially with shale capex being switched back on at $65p/b," said analyst Andrew Garthwaite.
"US airlines are very oil sensitive (10% off the oil price has historically led to 14% outperformance), are cheap on P/E relatives and oversold. Capital discipline still looks reasonable (with capex to sales still at the low end of its historical range). Our analysts have an Outperform rating on Delta Air Lines, JetBlue Airways, Southwest Airlines and United Continental," Garthwaite said.
American Airlines (AAL) shares are also up, 1.83% to $42.31, while Delta Airlines (DAL) shares are climbing 1.49% to $42.47 in trading today.
TheStreet Ratings team rates JETBLUE AIRWAYS CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation: