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December 12, 2017



For today's bulletin, we take a look at our latest STRONG BUY and BUY upgrades and focus on one of our top upgrades for the day, JetBlue $JBLU. We also provide a link to download a FREE STOCK REPORT on the company.

VALUATION WATCH: Overvalued stocks now make up 58.15% of our stocks assigned a valuation and 22.11% of those equities are calculated to be overvalued by 20% or more. Because overvaluation has declined below 60%, we have rescinded our latest Valuation Watch. Thirteen sectors are calculated to be overvalued.

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--Wild Blue Yonder

ValuEngine Upgrades JetBlue To STRONG BUY

For today's edition of our upgrade list, we used our website's advanced screening functions to search for UPGRADES to BUY or STRONG BUY with complete forecast and valuation data. They are presented by one-month forecast return. JetBlue is rated a STRONG BUY. The rest of today's upgrades are rated BUY.

Ticker
Company Name
Market Price
Valuation
Last 12-M Return
1-M Forecast Return
1-Yr Forecast Return
P/E Ratio
Sector Name
JBLU
JETBLUE AIRWAYS
22.08
18.28%
1.15%
1.08%
12.95%
12.22
Transportation
PIR
PIER 1 IMPORTS
5.24
0.69%
-23.28%
0.49%
5.89%
14.16
Retail-Wholesale
MTSI
MA-COM TECH SOL
32.26
37.27%
-39.38%
0.49%
5.83%
22.51
Computer and Technology
SMLP
SUMMIT MIDSTRM
19.75
-8.38%
-12.22%
0.46%
5.56%
11.90
Oils-Energy
MLHR
HERMAN MILLER
34.2
4.14%
0.44%
0.46%
5.47%
15.69
Business Services

For today's bulletin, we take a look at JetBlue Airways Corporation (JBLU). JetBlue Airways Corporation is a low-fare, low-cost passenger airline, which provides high-quality customer service primarily on point-to-point routes and is based in New York's John F. Kennedy International Airport. .JetBlue carries more than 38 million customers a year to 101 cities in the U.S., Caribbean, and Latin America with an average of 1,000 daily flights.

JetBlue is one of those airlines passengers either love, or hate. Low cost, but low frills. And, like so many airlines these days, the company is constantly trying to squeeze more money from ever more-crowded planes where passengers are --literally-- being squeezed more-and-more with every new seating arrangement.

We've seen some good days for airlines over the past year or two, as their money-making schemes increase the bottom line. However, JetBlue did not necessarily reflect this in their last quarterly earnings report. Back in October, the company reported operating income of $310 million, a decrease of 12.4% from the third quarter of 2016. Pre-tax income of $293 million, a decrease of 11.2% from the third quarter of 2016. Third quarter net income of $179 million, or $0.55 per diluted share. This compares to JetBlue’s third quarter 2016 net income of $199 million, or $0.58 per diluted share.

Company CEO Robin Hayes had a variety of explanations for this reduced performance. Hayes noted that

third quarter results were impacted by two hurricanes that reduced our EPS by approximately 6 cents. We are confident that the adjustments we are making to our network will limit any ongoing financial impact in 2018. Despite the short-term challenges, we remain focused on our long-term margin commitments to our shareholders. I’d like to thank our 21,000 Crew members in our operation and support centers, who successfully managed the unprecedented challenge of over 30 consecutive days of irregular operations

Looking forward to the next quarter and the rest of the year, JetBlue management expects capacity to increase between 4.5% and 5.5% year over year in the fourth quarter 2017. For the full year 2017, JetBlue expects capacity to increase between 4.0% and 5.0%. Revenue per available seat mile (RASM) growth is expected to range between (3.0%) and 0.0% for the fourth quarter 2017 compared to the same period in 2016. Cost per available seat mile (CASM) excluding fuel is expected to grow between 5.0% and 7.0% for the fourth quarter of 2017. For the full year 2017, JetBlue expects year over year CASM excluding fuel to grow between 4.0% and 5.0%.

Below is our latest data for JetBlue Airways Corporation (JBLU):

ValuEngine updated its recommendation from BUY to STRONG BUY for JETBLUE AIRWAYS on 2017-12-11. Based on the information we have gathered and our resulting research, we feel that JETBLUE AIRWAYS has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Sharpe Ratio.

You can download a free copy of detailed report on AMC Networks Inc. (AMCX) from the link below.



ValuEngine Forecast
 
Target
Price*
Expected
Return
1-Month
22.43 1.09%
3-Month
22.92 3.27%
6-Month
23.21 4.60%
1-Year
25.10 13.12%
2-Year
28.50 28.46%
3-Year
31.99 44.18%

Valuation & Rankings
Valuation
18.80% overvalued
Valuation Rank(?)
24
1-M Forecast Return
1.09%
1-M Forecast Return Rank
99
12-M Return
2.64%
Momentum Rank(?)
43
Sharpe Ratio
0.94
Sharpe Ratio Rank(?)
88
5-Y Avg Annual Return
28.59%
5-Y Avg Annual Rtn Rank
93
Volatility
30.51%
Volatility Rank(?)
51
Expected EPS Growth
1.48%
EPS Growth Rank(?)
21
Market Cap (billions)
6.48
Size Rank
84
Trailing P/E Ratio
12.28
Trailing P/E Rank(?)
88
Forward P/E Ratio
12.10
Forward P/E Ratio Rank
75
PEG Ratio
8.32
PEG Ratio Rank
4
Price/Sales
0.94
Price/Sales Rank(?)
72
Market/Book
1.56
Market/Book Rank(?)
65
Beta
0.66
Beta Rank
56
Alpha
-0.06
Alpha Rank
42

 

DOWNLOAD A FREE SAMPLE OF OUR JETBLUE AIRLINES (JBLU) REPORT BY CLICKING HERE

 

ValuEngine.com is an Independent Research Provider (IRP), producing buy/hold/sell recommendations, target price, and valuations on over 5,000 US and Canadian equities every trading day.
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Visit www.ValuEngine.com for more information

 

ValuEngine Capital Management LLC is a Registered Investment Advisory (RIA) firm that trades client accounts using ValuEngine's award-winning stock research.
Contact ValuEngine Capital at info@valuenginecapital.com
Visit www.ValuEngineCapital.com for more information

 

 
 
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