JetBlue Airways Corporation (NASDAQ:JBLU) saw quite a swift recovery from pandemic declines as it took just until early 2021 to erase all losses. However, since then, it has been a dismal ride. The stock has fallen from around $20 to a current level
JetBlue: Bargain Hunters Should Look Elsewhere
Summary
- JetBlue's Q1 earnings and guidance show ongoing revenue declines and unfavorable cost trends, signaling continued business weakness.
- Liquidity is tight, with a current ratio near 1.0 and significant near-term CAPEX needs, raising the risk of future capital raises.
- Despite a low P/S ratio, JetBlue's poor revenue growth versus peers justifies its discounted valuation.
- Technical signals remain overall bearish, and with no clear turnaround for the fundamentals in sight, I rate JetBlue stock a sell.
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