Back to top

Is JetBlue Airways (JBLU) a Great Value Stock Right Now?

Read MoreHide Full Article

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

JetBlue Airways (JBLU - Free Report) is a stock many investors are watching right now. JBLU is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another valuation metric that we should highlight is JBLU's P/B ratio of 1.12. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. JBLU's current P/B looks attractive when compared to its industry's average P/B of 2.43. Within the past 52 weeks, JBLU's P/B has been as high as 1.52 and as low as 1.05, with a median of 1.31.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. JBLU has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.67.

Finally, we should also recognize that JBLU has a P/CF ratio of 4.28. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. JBLU's P/CF compares to its industry's average P/CF of 5.51. Over the past year, JBLU's P/CF has been as high as 5.15 and as low as 3.74, with a median of 4.38.

These are just a handful of the figures considered in JetBlue Airways's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that JBLU is an impressive value stock right now.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


JetBlue Airways Corporation (JBLU) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in