This airline is a value and growth play. Analysts expect 21.47% annual growth from the company over the next five years.
JetBlue Airways Corporation (JBLU)
From AlphaProfit Sector Investors’ Newsletter
JetBlue Airways Corporation (JBLU) shares are out-of-favor despite the airline posting an enviably long string of positive earnings surprises.
For one, the airline’s unit revenue growth has been lackluster. JetBlue’s CEO Hayes is however confident of delivering industry-leading EPS growth in 2020 from cost control efforts already underway.
If Hayes’ forecast comes true, JetBlue should earn $2.50-3.00 a share in 2020, well above analysts’ $2.38 estimate. Trading at a discount to peers, JetBlue shares appeal to contrarian investors. They trade at 8.5X-forward EPS versus prospects of 18% EPS growth in the
next 12 months.
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com, 281-565-6963, January 2020