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Is JetBlue Airways (JBLU) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is JetBlue Airways (JBLU - Free Report) . JBLU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.16, while its industry has an average P/E of 8.42. Over the past year, JBLU's Forward P/E has been as high as 11.94 and as low as 8.16, with a median of 10.08.

We should also highlight that JBLU has a P/B ratio of 1.07. 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. This stock's P/B looks solid versus its industry's average P/B of 2.24. Within the past 52 weeks, JBLU's P/B has been as high as 1.50 and as low as 1.05, with a median of 1.28.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.64. This compares to its industry's average P/S of 0.73.

Value investors will likely look at more than just these metrics, but the above data helps show that JetBlue Airways is likely undervalued currently. And when considering the strength of its earnings outlook, JBLU sticks out at as one of the market's strongest value stocks.




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