Should I and How Can I Invest in jblu?

Are you considering an investment in jblu, or Jet Blue Airways as it is otherwise known?  Jblu stock has declined substantially over the past year as the company has hit a bit of a rough patch, but many believe that the current low prices could present an opportunity to pick up jblu stocks on the cheap. 

We’ll consider some basic facts about Jet Blue as a company and investment, and we’ll also help you figure out how to invest. It’s important to remember, however, that we are not offering a full analysis of  jblu, and that you should do more in-depth research into Jet Blue, its financial statements, and its industry before you invest.

Let’s go over some simple boilerplate information before we get started. First, jblu is the ticker symbol for Jet Blue Airlines. This means jblu is the symbol you look up when you’re looking to research or invest in JBLU. The jblu stock is listed on the NASDAQ, and as such you will be able to purchase it through essentially any online broker.

Further, jet plue airways is an airliner company, which means that  jblu is an airliner stock. The airline industry is quite competitive, so investing in it is generally a higher risk, higher reward sort of proposition. While risks are not as high as the make-or-break bio-tech field, you should know what you are getting into.

With that stuff out of the way, let’s dig a bit deeper.

JBLU Stock Break Down

There are many different ways to formulate an investing strategy. We’ll share one method with you, but you should know that there are many different approaches. When researching JBLU stock, you can use the method we describe, but we also encourage you to explore your own methods.

First, it’s helpful to get a big picture view of the Jet Blue stock. This means searching through news headlines and the Internet to see if there are any major events. As of writing this article (July 22), there were no major events over the past few days. An emergency landing in Charleston, a few partnerships and tie-ups with other companies, but nothing too dramatic. This was discovered after doing a quick search on “Google News”.

Next we headed to Reuters to search for any important news through this popular news service. Our quick research found reports of slightly decreased traffic in May, and a drop in unit revenues. Both of these factors are concerning and help explain why the jblu stock price is so cheap right now.

This brief analysis suggests that there are several concerns that we’d have to dig into deeper. Why is JBLU seeing a decrease in traffic and revenue? Understanding the trends behind this will be essential. For now, we’ll leave that analysis to the readers, but digging into said information would put you off to a great start.

Next, let’s take a quick look at the key financial statistics for JBLU. No stock analysis is complete without digging into basic financial information, so make sure you spend some time really digging into the numbers. By doing so you’ll get a better grip of the company itself.

First, the trailing and forward Price-per-Earnings ratio for JBLU (as of July 22, 2016) were both around 8. This is a very low P/E ratio, but low p/e ratios are somewhat common in the airline industry. Next, we can look at revenues. Total revenue levels, which came in at about $6.5 billion dollars, vs. a market cap of $5.63 billion dollars. More important than current revenues, arguably, is growth. Revenues grew 6.10% in the last quarter, year-over-year, an encouraging sign, but not overwhelming.

The company also have a profit margin of about 11.35%. JBLU also has $1.19 billion dollars in cash, vs. $1.78 billion in debts. These are healthy numbers, overall. There are many other stats worth looking at, so we encourage you to dig in further and learn more about the numbers.

Conclusion: Should I Buy JBLU Stock?

Is Jetblue airlines a good investment choice? We do believe that the company is worth consideration, but we’re not going to tell you to buy, or not buy JBLU stock, at least not until you do some more research. Our analysis uncovered some concerns about JetBlue, particularly the declining traffic and per-unit revenue. Meanwhile, the financial indicators looked sound, though not overwhelming.