We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shares of JetBlue (JBLU) Down 7.67% Yesterday: Here's Why
Read MoreHide Full Article
Shares of JetBlue Airways (JBLU - Free Report) declined 7.67% on Dec 13, closing the trading session at $7.10 per share. The downside was due to the warning of air-travel demand being not as strong as expected for the month of December.
With hurricane Nicole impacting operations, close-in demand for the final month of the year has been weaker than expected. Apart from the hurricane, the holiday calendar timing this year had a greater-than-expected negative impact.
As a result, JBLU now anticipates revenue per available seat mile for the fourth quarter of 2022 to be at the low-end of its earlier guided range of 15-19% increase from fourth-quarter 2019 actuals. Other aspects of the fourth-quarter guidance are unchanged.
Capacity is still anticipated to increase in the 1-4% range from fourth-quarter 2019 actuals. CASM, excluding fuel and special items, is predicted to rise 8.5-10.5%. For fourth-quarter 2022, JetBlue still expects fuel price per gallon to be $3.65.
JetBlue’s disappointing comments on air-travel demand for the month of December resulted in declination of shares of most other airline companies on Dec 13. The NYSE Airline index lost 2.96% of its value yesterday, as most of its constituents ended the day in the red.
Some better-ranked stocks in the broader Transportation sector include the following:
Covenant Logistics (CVLG - Free Report) : CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.
The gradually improving freight market scenario is a tailwind to Covenant. CVLG’s cost-control efforts are appreciated as well. CVLG currently sports a Zacks Rank #1. The stock has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 10.1% upward over the past 60 days.
Teekay Tankers (TNK - Free Report) : TNK is being well-served by the increase in tanker rates. A gradual ramp-up in economic activities also bodes well. High fuel costs are, however, weighing on the bottom line.
Teekay Tankers currently sports a Zacks Rank #1. TNK’s shares have soared 160% in a year’s time. Over the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved 87.6% north.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Shares of JetBlue (JBLU) Down 7.67% Yesterday: Here's Why
Shares of JetBlue Airways (JBLU - Free Report) declined 7.67% on Dec 13, closing the trading session at $7.10 per share. The downside was due to the warning of air-travel demand being not as strong as expected for the month of December.
With hurricane Nicole impacting operations, close-in demand for the final month of the year has been weaker than expected. Apart from the hurricane, the holiday calendar timing this year had a greater-than-expected negative impact.
As a result, JBLU now anticipates revenue per available seat mile for the fourth quarter of 2022 to be at the low-end of its earlier guided range of 15-19% increase from fourth-quarter 2019 actuals. Other aspects of the fourth-quarter guidance are unchanged.
Capacity is still anticipated to increase in the 1-4% range from fourth-quarter 2019 actuals. CASM, excluding fuel and special items, is predicted to rise 8.5-10.5%. For fourth-quarter 2022, JetBlue still expects fuel price per gallon to be $3.65.
JetBlue’s disappointing comments on air-travel demand for the month of December resulted in declination of shares of most other airline companies on Dec 13. The NYSE Airline index lost 2.96% of its value yesterday, as most of its constituents ended the day in the red.
Zacks Rank & Key Picks
JetBlue Airways currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Transportation sector include the following:
Covenant Logistics (CVLG - Free Report) : CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.
The gradually improving freight market scenario is a tailwind to Covenant. CVLG’s cost-control efforts are appreciated as well. CVLG currently sports a Zacks Rank #1. The stock has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 10.1% upward over the past 60 days.
Teekay Tankers (TNK - Free Report) : TNK is being well-served by the increase in tanker rates. A gradual ramp-up in economic activities also bodes well. High fuel costs are, however, weighing on the bottom line.
Teekay Tankers currently sports a Zacks Rank #1. TNK’s shares have soared 160% in a year’s time. Over the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved 87.6% north.