JetBlue Airways Corp (JBLU, Financial) has experienced a notable fluctuation in its stock price over recent months. With a current market capitalization of $2.35 billion and a stock price of $6.9, the airline has seen a significant 7.83% loss over the past week. However, looking at a broader timeframe, JBLU has gained an impressive 27.39% over the past three months. Despite this growth, the GF Value of $10.14 suggests caution, as it indicates a possible value trap, a sentiment echoed three months ago when the GF Value was $14.78. This analysis aims to delve into the factors behind these price changes and provide insights into the company's performance and prospects.
Company Overview
JetBlue Airways Corp, a player in the transportation industry, is renowned for its low-cost yet high-quality airline services. The company's operations span across the United States, the Caribbean, Latin America, Canada, and England, with a fleet that includes Airbus A321, Airbus A320, Airbus A321neo, and Embraer E190 aircraft. JetBlue's business is segmented into Domestic & Canada, Caribbean & Latin America, and Atlantic, with the majority of its revenue stemming from the Domestic & Canada segment. 
Assessing Profitability
JetBlue's Profitability Rank stands at 6/10, reflecting a moderate level of profitability within the industry. The company's operating margin is currently at -0.33%, which, while negative, fares better than 15.42% of 973 companies in the same sector. Its Return on Equity (ROE) is -8.99%, surpassing 9.26% of its peers, and the Return on Assets (ROA) at -2.31% is better than 12.35% of competitors. The Return on Invested Capital (ROIC) is -0.22%, which is more favorable than 16.65% of similar companies. Over the past decade, JetBlue has managed to stay profitable for 6 years, outperforming 35.95% of 957 companies. 
Growth Trajectory
The Growth Rank for JetBlue is also 6/10, indicating a balanced growth profile. The airline's 3-Year Revenue Growth Rate per Share is an impressive 39.80%, which is higher than 91.31% of 921 companies in the industry. Its 5-Year Revenue Growth Rate per Share stands at 4.60%, surpassing 53.4% of 852 companies. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 4.34%, which is more favorable than 43.27% of 275 companies. Additionally, the 3-Year EPS without NRI Growth Rate is a robust 57.00%, better than 81.69% of 688 companies. 
Major Stakeholders
JetBlue's shareholder landscape features several notable holders. Donald Smith & Co is the leading holder with 12,450,690 shares, accounting for 3.74% of the company. PRIMECAP Management (Trades, Portfolio) holds 3,351,100 shares, representing 1.01%, and First Eagle Investment (Trades, Portfolio) has a stake of 0.17% with 561,322 shares. These significant investors reflect confidence in the airline's business model and future prospects.
Competitive Landscape
When compared to its competitors, JetBlue's market capitalization of $2.35 billion positions it within a competitive range. SkyWest Inc (SKYW, Financial) has a slightly higher market cap of $2.75 billion, while Frontier Group Holdings Inc (ULCC, Financial) and Allegiant Travel Co (ALGT, Financial) have market caps of $1.53 billion and $1.13 billion, respectively. This comparison highlights JetBlue's standing within the industry and its relative performance against peers.
Conclusion
In summary, JetBlue Airways Corp's stock performance has been a mixed bag, with a recent downturn over the past week but a substantial gain over the last three months. The company's profitability metrics, while not stellar, are competitive within the industry. Growth indicators are particularly strong, with revenue and EPS growth rates outpacing many peers. The presence of significant holders suggests investor confidence, and the airline's market capitalization is in line with close competitors. As investors consider JetBlue's potential as an investment, they should weigh these factors carefully, especially in light of the GF Value's warning of a possible value trap.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
