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Is JetBlue Airways (JBLU) Stock Undervalued 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.83, which compares to its industry's average of 9.36. Over the past 52 weeks, JBLU's Forward P/E has been as high as 11.94 and as low as 7.57, with a median of 9.41.

Another valuation metric that we should highlight is JBLU's P/B ratio of 1.22. 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 2.98. JBLU's P/B has been as high as 1.39 and as low as 1.04, with a median of 1.20, over the past year.

These are only a few of the key metrics included in JetBlue Airways's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, JBLU looks like an impressive value stock at the moment.


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