The Bullish Case for JetBlue Airways (JBLU)

JetBlue Airways Corp. (NASDAQ:JBLU) shares are on a tear today, up 7%+ thanks to some kind words from Barron's.  JetBlue shares have gained 15% in the past 30 days, finally breaking clear of the $6 level.

JetBlue Airways Corp (JBLU) shares have traded between $4.64 and $6.95 over the past 12 months and its only down 9% from its 52-week high.  JetBlue shares are now trading with a P/E Ratio of 34.6 and EPS of 0.17. 

This past weekend Barron's went to bat for JetBlue highlighting the company as a diamond in the rough.   JetBlue currently has two strikes against it as the airline industry has seen better days since the recession began in the recent years, and the fact that it is a start-up company that probably expanded too quickly. JetBlue took on too much debt too rapidly and ended up being beaten by its bigger stronger competitors like Delta (DAL) and American Airlines (AMR).

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The airline is slowly making a comeback as many investors as well as travelers have noticed JetBlue's appeal. It has had rising profits, a moderate expansion strategy, growing appeal to business travelers as JetBlue's seats offer more leg room than other carriers, and widening alliances with foreign airlines through its presence at Logan Intl. and JFL Intl airports in Boston and New York, respectively.

Via Benzinga.com -- JetBlue is "In the midst of a profits turnaround" says Deutsche Bank Analyst, Michael Linenberg. JetBlue is slowly growing into a profitable airline. Airline traffic is picking back up and travelers are starting to take a second look at JetBlue as it continues to expand its fleet as well as destinations, though still not offered in many popular US cities. It is also a lower cost airline that is starting to gain strong connections in Europe with AerLingus and Lufthansa.

JetBlue is one of the few airline carriers that caters to its customers in very creative ways, remember the $10 flights they had back in May?  If there's one airline stock worth your time and money, its JetBlue, both as a consumer and investor.

Disclaimer: No positions in any of the securities mentioned in this publication.