Analysts have raised their EPS estimates three times in the past 30 days for this airline. Our second recommendation is a Sell, due to the rout in biotech stocks.
Buy: JetBlue Airways Corp. (JBLU )
from Blue Chip Growth
Compared with Alaska Air, JetBlue Airways Corp. (JBLU) is a relative newcomer to the industry. JetBlue came on the scene 16 years ago. A lot has changed since JetBlue bought its first Airbus A320 aircraft in December 1999.
For starters, JetBlue has grown into the country’s fifth-largest airline, with well over 200 aircrafts in its fleet and 900 flights a day. JetBlue now offers flights to 90 destinations in the U.S. and 17 countries across Latin America and the Caribbean. In July, JetBlue became the first major airline to offer charter flights to Cuba since travel restrictions were eased.
And, while being a low-cost carrier, JetBlue has also secured the top spot on several customer service rankings. For the past 11 years running, JetBlue has been recognized by the J.D. Power North America Airline Satisfaction Study. For 2015, JetBlue was awarded the highest honor in customer satisfaction among low-cost carriers.
JetBlue Airways is aggressively expanding its footprint in the Caribbean and continues to benefit from low jet fuel prices. This quarter, the analyst community is calling for 10.2% annual sales growth and 133.3% earnings growth. This year, the consensus estimate is for 10.2% sales growth and 168.6% earnings growth. All the while, JBLU still trades at less than 13 times forecasted earnings. I consider this Moderately Aggressive stock an excellent buy up to $29 per share.
Louis Navellier, Blue Chip Growth, www.bluechipgrowth.com, 800-718-8289, October 201