While consumers may not like the new fees this airline recently announced, investors are on board.
JetBlue Airways (JBLU)
from Upside
Shares of JetBlue Airways (JBLU) have recently risen, fueled partly by a broad rally in airline stocks. In addition, Reuters reported that a portfolio manager at Hennessy Funds favors JetBlue, reflecting potentially improved demand from middle-income travelers. In addition, the airline could benefit from fatter profit margins because of lower fuel prices. JetBlue posted impressive October traffic, with revenue passenger miles up 10.4% on capacity growth of 7.6%.
Shares have rallied 49% this year but further upside remains, reflecting JetBlue’s solid operating momentum and strong Quadrix scores. Per-share earnings are expected advance 29% this year and 51% in 2015. JetBlue, with an impressive 97 Overall score, is a Best Buy.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, November 18, 2014