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Tuesday, April 27, 2021 10:16:32 AM
JetBlue (JBLU) Stock Grounded Despite Upbeat Earnings
By: Schaeffer's Investment Research | April 27, 2021
• A rebound in air travel demand keyed JetBlue's revenue beat
• The shares have been facing off with the $22 level for three years
JetBlue Airways Corporation (NASDAQ:JBLU) is the latest airliner to step into the earnings confessional. The results are encouraging; JetBlue posted a first-quarter loss of $1.48, narrower than the expected first-quarter loss of $1.69. Revenue beat expectations as well, thanks to a rebound in air travel demand. Nevertheless, JBLUE is down 2.9% to trade at $19.92 this morning, despite trading higher in premarket action.
On the charts, JetBlue stock has faced off with a stiff ceiling at $22, and has been since March 2018, with the last attempt stalling out at an annual high of $21.96 on April 6. Over the last three months, JBLU has tacked on 41% with support from the 50-day moving average catching a sharper pullback last week. Longer term, the security has added 158.7% year-over-year.
Coming into today, analysts were quite optimistic on the stock. In fact, eight of the 10 in coverage call it a "buy" or better, while the remaining three sport "hold" or worse rating. Plus, the 12-month consensus price target of $21.79 is a 5.9% premium to current levels.
For those looking to speculate on the security's next move, options may be the way to go. According to JBLU's Schaeffer's Volatility Index (SVI) of 46%, which stands higher than only 6% of readings from the past 12 months, options traders are pricing in relatively low volatility expectations for Shopify -- a boon for premium buyers.
Read Full Story »»»
DiscoverGold
By: Schaeffer's Investment Research | April 27, 2021
• A rebound in air travel demand keyed JetBlue's revenue beat
• The shares have been facing off with the $22 level for three years
JetBlue Airways Corporation (NASDAQ:JBLU) is the latest airliner to step into the earnings confessional. The results are encouraging; JetBlue posted a first-quarter loss of $1.48, narrower than the expected first-quarter loss of $1.69. Revenue beat expectations as well, thanks to a rebound in air travel demand. Nevertheless, JBLUE is down 2.9% to trade at $19.92 this morning, despite trading higher in premarket action.
On the charts, JetBlue stock has faced off with a stiff ceiling at $22, and has been since March 2018, with the last attempt stalling out at an annual high of $21.96 on April 6. Over the last three months, JBLU has tacked on 41% with support from the 50-day moving average catching a sharper pullback last week. Longer term, the security has added 158.7% year-over-year.
Coming into today, analysts were quite optimistic on the stock. In fact, eight of the 10 in coverage call it a "buy" or better, while the remaining three sport "hold" or worse rating. Plus, the 12-month consensus price target of $21.79 is a 5.9% premium to current levels.
For those looking to speculate on the security's next move, options may be the way to go. According to JBLU's Schaeffer's Volatility Index (SVI) of 46%, which stands higher than only 6% of readings from the past 12 months, options traders are pricing in relatively low volatility expectations for Shopify -- a boon for premium buyers.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
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