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Are Investors Undervaluing JetBlue Airways (JBLU) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
JetBlue Airways (JBLU - Free Report) is a stock many investors are watching right now. JBLU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.55. This compares to its industry's average Forward P/E of 8.91. Over the past year, JBLU's Forward P/E has been as high as 11.94 and as low as 8.51, with a median of 10.27.
Another valuation metric that we should highlight is JBLU's P/B ratio of 1.24. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.65. Over the past 12 months, JBLU's P/B has been as high as 1.50 and as low as 1.05, with a median of 1.29.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. JBLU has a P/S ratio of 0.72. This compares to its industry's average P/S of 0.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that JetBlue Airways is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JBLU feels like a great value stock at the moment.
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Are Investors Undervaluing JetBlue Airways (JBLU) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
JetBlue Airways (JBLU - Free Report) is a stock many investors are watching right now. JBLU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.55. This compares to its industry's average Forward P/E of 8.91. Over the past year, JBLU's Forward P/E has been as high as 11.94 and as low as 8.51, with a median of 10.27.
Another valuation metric that we should highlight is JBLU's P/B ratio of 1.24. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.65. Over the past 12 months, JBLU's P/B has been as high as 1.50 and as low as 1.05, with a median of 1.29.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. JBLU has a P/S ratio of 0.72. This compares to its industry's average P/S of 0.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that JetBlue Airways is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JBLU feels like a great value stock at the moment.