Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, airline operator JetBlue Airways (Nasdaq: JBLU ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at JetBlue's business and see what CAPS investors are saying about the stock right now.
JetBlue facts
| Headquarters (Founded) |
Forest Hills, N.Y. (1998) |
| Market Cap |
$1.54 billion |
| Industry |
Airlines |
| Trailing-12-Month Revenue |
$4.3 billion |
| Management |
Co-Founder/CEO David Barger
CFO Mark Powers |
| Return on Equity (Average, Past 3 Years) |
3.4% |
| Cash/Debt |
$1.21 billion / $3.06 billion |
| Competitors |
Delta Air Lines (NYSE: DAL )
US Airways (NYSE: LCC )
United Continental Holdings (NYSE: UAL ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 18% of the 1,153 members who have rated JetBlue believe the stock will underperform the S&P 500 going forward. These bears include girlcowboy3 and All-Star DarthMaul09, who is ranked in the top 1% of our community.
Earlier this year, girlcowboy3 touched on the headwinds working against JetBlue: "[P]rices of gas will keep people from traveling. Jet fuel cost will be passed on to the consumer in the fares they pay."
Currently, JetBlue even sports a P/E of 22. That represents a clear premium to other airline stocks like Delta (16), US Airways (12), and United Continental (12).
CAPS All-Star DarthMaul elaborates on the JetBlue bear case:
Even the better airlines will suffer from higher oil prices and rising inflation. Higher costs will have to be passed onto consumers if adequate profits are to be maintained. How much demand destruction can a small airline take before its small profit turns negative? How long will investors be willing to hold a company with weak profits and no dividend?
What do you think about JetBlue, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.
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