Many stocks have been testing new highs in 2020, and one of the most notable is JetBlue Airways Corporation (JBLU). Currently, JBLU is trading at $15.59 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $10.42.
To add more color to this target, the company’s high over the last year is $21.65 and the low is $6.61. Over the last 52 weeks, JBLU is down -27.99% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, JBLU reported a profit of $930.0 million. JetBlue Airways Corporation also saw revenues increase to $1.59 billion. In addition, JBLU has free cash flow of -$243.0 million as of 03-2020 The company’s EBITDA came in at -$195.0 million which compares well with its peers.
JBLU booked profit margins of 3.30%, its Return on Equity (ROE) is 5.60%, and its Return on Assets is 2.20%. All told, it is clear that, JBLU needs to be on your watchlist.
About JetBlue Airways Corporation
If readers are unfamiliar, JetBlue Airways Corporation, a passenger carrier company, provides air transportation services. As of December 31, 2019, the company operated a fleet of 63 Airbus A321 aircraft, 6 Airbus A321 neo aircraft, 130 Airbus A320 aircraft, and 60 Embraer E190 aircraft. It also served 99 destinations in the 30 states in the United States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and 21 countries in the Caribbean and Latin America. JetBlue Airways Corporation was founded in 1998 and is based in Long Island City, New York.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. JBLU has a short ratio of 1.25 and outstanding shares of 277.20M.
JBLU has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 33.48 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.82. JetBlue Airways Corporation JBLU also noted assets of $12.34 billion at the end of the last quarter. Investors should also keep an eye on sector updates as JBLU has historically followed its peers on positive news.
All told, JetBlue Airways Corporation JBLU has strung together solid data and demonstrated underlying fundamentals. At its current valuation, JBLU represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
JetBlue Airways Corporation JBLU is now commanding a market cap of 4.32B and a float of 266.63M. JBLU is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of JBLU stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in JBLU, either long or short, and we have not been compensated for this article.