Top Travel Stock: JetBlue (JBL)
My first recommendation, JetBlue Airways (JBLU) has been cleared for takeoff. Based in Forest Hills, New York, this passenger airliner operates some 700 flights daily with a fleet of 175 aircrafts. JetBlue transports passengers to 71 destinations in 22 states, Puerto Rico and Mexico, as well as to 12 countries in the Caribbean and Latin America.
In addition to its low-cost fares, the company differentiates itself from the competition by offering in-flight entertainment to all passengers at no additional cost and its customer Bill of Rights. The company has been aggressively expanding its presence at many of the nation’s largest airports while also increasing passenger revenue per available seat mile, an important metric in the airline industry. The fact that the company hedges its fuel costs also helps keep profit margins fat.
For the current quarter, JetBlue is expected to post 120% annual earnings growth—nearly five times higher than the industry average (25%). This outperformance is expected to continue through the end of the year, with 73% forecast growth for the following quarter and 37% growth for FY 2014. JBLU shares are currently trading just over $9 and are a B-rated Buy.