S&P 500   4,519.63 (+0.74%)
DOW   35,457.31 (+0.56%)
QQQ   375.47 (+0.76%)
AAPL   148.76 (+1.51%)
MSFT   308.23 (+0.31%)
FB   339.99 (+1.39%)
GOOGL   2,864.74 (+0.32%)
TSLA   864.27 (-0.67%)
AMZN   3,444.15 (-0.08%)
NVDA   222.90 (+0.31%)
BABA   177.00 (+6.10%)
NIO   40.03 (+1.06%)
CGC   14.34 (+8.64%)
GE   104.73 (+0.59%)
AMD   116.33 (-0.09%)
MU   67.57 (+0.46%)
T   25.59 (+1.03%)
F   15.42 (-0.90%)
ACB   7.45 (+7.66%)
DIS   171.18 (+0.02%)
PFE   42.09 (+1.86%)
BA   215.97 (-0.47%)
AMC   40.80 (-5.18%)
S&P 500   4,519.63 (+0.74%)
DOW   35,457.31 (+0.56%)
QQQ   375.47 (+0.76%)
AAPL   148.76 (+1.51%)
MSFT   308.23 (+0.31%)
FB   339.99 (+1.39%)
GOOGL   2,864.74 (+0.32%)
TSLA   864.27 (-0.67%)
AMZN   3,444.15 (-0.08%)
NVDA   222.90 (+0.31%)
BABA   177.00 (+6.10%)
NIO   40.03 (+1.06%)
CGC   14.34 (+8.64%)
GE   104.73 (+0.59%)
AMD   116.33 (-0.09%)
MU   67.57 (+0.46%)
T   25.59 (+1.03%)
F   15.42 (-0.90%)
ACB   7.45 (+7.66%)
DIS   171.18 (+0.02%)
PFE   42.09 (+1.86%)
BA   215.97 (-0.47%)
AMC   40.80 (-5.18%)
S&P 500   4,519.63 (+0.74%)
DOW   35,457.31 (+0.56%)
QQQ   375.47 (+0.76%)
AAPL   148.76 (+1.51%)
MSFT   308.23 (+0.31%)
FB   339.99 (+1.39%)
GOOGL   2,864.74 (+0.32%)
TSLA   864.27 (-0.67%)
AMZN   3,444.15 (-0.08%)
NVDA   222.90 (+0.31%)
BABA   177.00 (+6.10%)
NIO   40.03 (+1.06%)
CGC   14.34 (+8.64%)
GE   104.73 (+0.59%)
AMD   116.33 (-0.09%)
MU   67.57 (+0.46%)
T   25.59 (+1.03%)
F   15.42 (-0.90%)
ACB   7.45 (+7.66%)
DIS   171.18 (+0.02%)
PFE   42.09 (+1.86%)
BA   215.97 (-0.47%)
AMC   40.80 (-5.18%)
S&P 500   4,519.63 (+0.74%)
DOW   35,457.31 (+0.56%)
QQQ   375.47 (+0.76%)
AAPL   148.76 (+1.51%)
MSFT   308.23 (+0.31%)
FB   339.99 (+1.39%)
GOOGL   2,864.74 (+0.32%)
TSLA   864.27 (-0.67%)
AMZN   3,444.15 (-0.08%)
NVDA   222.90 (+0.31%)
BABA   177.00 (+6.10%)
NIO   40.03 (+1.06%)
CGC   14.34 (+8.64%)
GE   104.73 (+0.59%)
AMD   116.33 (-0.09%)
MU   67.57 (+0.46%)
T   25.59 (+1.03%)
F   15.42 (-0.90%)
ACB   7.45 (+7.66%)
DIS   171.18 (+0.02%)
PFE   42.09 (+1.86%)
BA   215.97 (-0.47%)
AMC   40.80 (-5.18%)

Time to Step into Jet Blue Stock for the Winter

Thursday, October 14, 2021 | Jea Yu
Time to Step into Jet Blue Stock for the Winter

Airline carrier JetBlue (NASDAQ: JBLU) has been recovering on the reopening trend as pent-up demand is bolstering its recovery towards 2019 pre-pandemic levels. Being an epicenter industry stock should provide no surprise when revenues rose triple digits since the peak of the pandemic in Q2 2020. The Company is managing to pay down debt and limit losses and daily cash burn with little exposure internationally beyond the Caribbean and Latin America. Domestic travel is continuing to rebound pushing the Company into positive cash flow in Q2 2021. The Company is working to improve margins and repairing its balance sheet. Investors are looking into the holiday travel and vacation season to see if pent-up travel demand explodes this winter. Prudent investors with a long-term horizon looking to gain exposure in this recovering industry can watch for opportunistic pullbacks in shares of JetBlue.

Q2 FY 2021 Earnings Release

On July 27, 2021, Jet Blue released its fiscal second-quarter 2021 results for the quarter ending June 2021. The Company reported an earnings-per-share (EPS) loss of (-$0.65) excluding non-recurring items versus consensus analyst estimates for a loss of (-$0.74), a $0.09 beat. Revenues grew 597.2% year-over-year (YoY) to $1.5 billion beating analyst estimates for $1.44 billion. Q2 saw strong signs of consumer strength and the return of travel demand. The Company reduced debt by $1.2 billion to $0.9 billion which is below pre-pandemic levels and the Company’s adjusted debt to capital was 55%. The Company ended the quarter with $3.7 billion in cash and cash equivalents or 46% of 2019 revenue. JetBlue CEO Robin Hayes commented, “In the second quarter, we saw strong signs that consumer confidence and travel demand is returning, with second-quarter revenue doubling compared to the first quarter driven by pent-up demand. As we turn to recovery, we continued to generate positive cash from operations in the second quarter, and we expect continued improvement in our operating performance as we progress towards a full recovery. We are creating a path to restore our earnings power to beyond 2019 levels and generate long-term value for our owners in the years ahead. Our attention is now squarely on rebuilding our margins and repairing our balance sheet.”

COO Comments

Jet Blue COO Joanna Geraghty comment, “We are pleased to see further month-on-month improvement into the peak summer months, with demand momentum across all of our geographies. We ended the quarter with load factors in the mid-80s with June capacity largely back to pre-pandemic levels, compared to an average load factor in the mid-60s in the first quarter. For the third quarter of 2021, our planning assumption for revenue is a decline of between (4%) and (9%) year over two, another quarter of strong sequential improvement of approximately 20 points. We expect unit revenue to continue to improve on top of increasing capacity, with load factors in the mid-to-high 80s this summer. We have seen days with average load factors in the 90s. For the third quarter of 2021, our planning assumption is for capacity to be between flat to down (3%) year over two, given the strong sequential improvement in demand. Throughout the pandemic, we have been nimble in adjusting our capacity deployment to the prevailing demand environment. We’ll maintain this approach given the continued uncertainty on the course of the pandemic caused by variants.”

Q3 2021 Guidance

COO Geraghty provided rough guidance, “For the third quarter, we estimate our EBITDA will range between $75 and $175 million dollars, reflecting continued sequential improvement in demand partially offset by continued cost pressures from fuel prices, and airport rents and landing fees. We expect to remain in positive EBITDA territory through the end of the year and expect to generate pre-tax profits in July and August. We are committed to generating better than pre-pandemic earnings in the next few years by growing revenue and controlling costs, and we are confident that we are on the right path to expanding margins in a sustainable way. We are now squarely focused on repairing our balance sheet, lowering our total cost of debt, and growing our unencumbered asset base. We reduced our net debt by over 50% to under $1 billion dollars at the end of June. Both our net debt and the weighted average cost of debt now sit below pre-pandemic levels.”

Time to Step into Jet Blue Stock for the Winter

JBLU Opportunistic Pullback Levels

Using the rifle charts on the weekly and daily time frames provides a precision view of the playing field for JBLU stock. The weekly rifle chart peaked twice off the $21.75 Fibonacci (fib) level. The weekly rifle chart downtrend has reversed and is attempting a breakout with a rising 5-period moving average (MA) at $15.56 with 15-period MA at $15.44 forming a solid base. The weekly stochastic has a mini pup rising at the 40-band. The weekly formed a market structure high (MSH) sell trigger when $18.31 broke down but is attempt a weekly market structure low (MSL) buy trigger on a breakout above $16.09. The weekly upper Bollinger Bands (BBs) sit at $20.27. The daily rifle chart is in a make or breaks as the uptrend stalls with a flat 5-period MA at $15.80 as the stochastic forms a mini inverse pup fall. The daily BBs are compressing as both envelopes slope inward indicating a compression preceding the range break. Prudent investors can use this period to watch for opportunistic pullback levels at the $14.90 fib, $14.15 fib, $13.28 fib, $12.39 fib, and the $11.29 fib level. Upside trajectories range from the $18.50 fib to the $22.98 fib level. 

Should you invest $1,000 in right now?

Before you consider , you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and wasn't on the list.

While currently has a "" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

 


Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.