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Actionable news in JBLU: JetBlue Airways Corporation,

Et Tu, JetBlue?


Transport companies are not keeping pace with the market.

JetBlue epitomizes GARP (growth at a reasonable price) investing.

JetBlue’s pullback appears unwarranted.

By Paul Price

(Dr. Paul Price is a regular contributor to the LCP newsletter. To receive timely trade ideas from Paul, take a free trial here.)

Major indices remained close to all-time records last week. Air transport companies, though, have not kept pace.

Concerns about expanding industry capacity, higher jet fuel prices and economic weakness have dampened enthusiasm for the group. The table below shows the typical retracement levels of some representative players.

All the companies listed above remain highly profitable. Southwest (LUV), Alaska Airlines (ALK) and Delta Air Lines (DAL) are expected to post all-time record EPS in 2016.

Niche player JetBlue (NASDAQ:JBLU) is also expected to produce best-ever 2016 results. Consensus estimates now center on EPS of $2.16. Despite that, JBLU sustained even greater stock price damage than the rest of the group. Through Aug. 26, 2016, they'd fallen 42.2% from 2015's peak of $27.36, closing at...