JetBlue Airways Corp. (JBLU): Today's Most Compelling Stock Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Tuesday, April 30, 2013

At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
JetBlue Airways Corp JBLU Airlines 8.8 +17.29% $6.65

Why We Like The Stock:

JetBlue Airways Corp (JBLU) is our most compelling buy today due to the fact that it is a top- rated stock (in terms of earnings strength and company/industry performance) in an attractive industry, Airlines. Like its competitors United Continental Holdings (UAL), Southwest (LUV), and Delta Airlines (DAL), JBLU has dispayed considerable strength so far in 2013. Airlines have been on our radar for buying oppoptunities in the intermediate-term, and JBLU is a very attractive prospect at current prices. Since August 2012, the stock has been firmly entrenched in an uptrend, making higher highs and higher lows along the way. More recently, JBLU has been consolidating gains in April and is now rounding out right above its 50-day moving average. We like JBLU at current prices for a run back up to April highs at $7.21, as well as a longer-term hold as long as Airlines continue to exhibit strength.
We Would Be Buyers:

At the current price (~$6.87).

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Company Profile:

JetBlue Airways Corporation (JetBlue) is a passenger airline that operates primarily on point-to-point routes with its fleet of 120 Airbus A320 aircraft and 49 EMBRAER 190 aircraft. As of December 31, 2011, it served 70 destinations in 22 states, Puerto Rico, Mexico and 12 countries in the Caribbean and Latin America. Most of JetBlue flights have as an origin or destination New York or one of its other focus cities: Boston, Fort Lauderdale, Los Angeles, Orlando or San Juan, Puerto Rico. As of December 31, 2011, the Company operated an average of 700 daily flights. During the year ended December 31, 2011, the Company acquired eight take-off and landing slots at each of New York’s LaGuardia Airport and Washington D.C.’s Ronald Reagan National Airport. The Company’s operations primarily consist of transporting passengers on its aircraft with domestic United States operations, including Puerto Rico, which accounted for 85% of its capacity in 2011.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

  JetBlue Airways Corp - Last 3 Months

  JetBlue Airways Corp - Last 12 Months

  JetBlue Airways Corp - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

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The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: DAL , JBLU , LUV , UAL

David Moenning


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