Time for a JetBlue (JBLU) comeback?

Brought to you by creditcardguide.com - Credit card offers can be a tricky subject to wrap your head around. There are so many student credit cards out there, and even more cash back credit cards. Always be sure to read the fine print of the credit card offers and get the best card for your needs.


JetBlue Airways Corp. (NASDAQ:JBLU) reports earnings for Q3 07 tomorrow and everyone is watching.  Shares are now less than $1 away from the 52-week low, so if they don't blow it the call, there could be a nice rally.

Shares of JBLU are down almost 20% in the last 3 months, analysts have downgraded JetBlue shares, cut earnings estimates and price targets and issued bleak statements about JetBlue's near-term performance outlook.  

Wall Street has pressured the industry to raise ticket prices to offset higher fuel costs and to squeeze more fliers into crowded planes by cutting capacity. Oil prices have risen by about 30% over the past 52 weeks.

Analysts polled by Thomson Financial expect earnings of 7 cents per share on revenue of $767.4 million. JetBlue posted flat earnings in the third quarter of 2006 due to higher operating expenses and tightened airport-security measures tempering demand after foiled bombing attempts in London. 

The Masters have said it before, somehow this trendy-loving-airline company has a way of returning to life just when it looks like they are done for. However if its any indication Southwest Airlines Co. (LUV) and Continental Airlines Inc. (CAL) reported Q3 07 profits last week due to increased travel demand that let them fill more seats at higher fares.

JetBlue's new slogan

Look, I hate airlines stocks and I hate traveling with any airline, but if I can book a flight with them, I use JetBlue every time. The have a huge fan base and I know that's not good enough to buy this stock. Truth be told, Jim Cramer has told us enough times to never buy airline stocks, and I agree. But just when you think JetBlue is done for and everyone's had enough they manage to stay alive like American Idol (please tell me this is the last season).  

If you have money to gamble, this could be your earnings call to play, the Masters are giving JBLU a 60% chance of beating the call.


TheStockmasters.com - Finally Wall Street Commentary that means something. Frank Lara Jr.

 

Article by Frank Lara Jr.

Contributor at TheStockMasters.com

Disclaimer: The Author does not hold any positions or shares in the securities mentioned in this publication nor does he stuff his shorts.

5 Second Advertisement by theStockMasters - Just read it, we're cheap.

Master Picks NewsletterOur Original newsletter that has enlightened our subscribers for over a year. It contains What to Buy, What to Sell, and Market Commentary. We have a 17.5% return since October 2006 and the average wait for a return is only 3.61 months and we have the track record to prove it (click here to view Master Picks track record). We've had great feedback, and in turn have already created a unique following of thousands of Stockmasters. Our asking price is only $45 for a 12 month subscription.