Keep an eye on beaten-down, oversold shares of JetBlue (JBLU).
For one, Director Mittal Nik just bought 100,000 shares of the company’s stock. This transaction, valued at $613,550, highlights his confidence in the airline’s future.
Two, after gapping from about $8.25 to $5.75, JBLU is starting to take off again. Last trading at $6.50, we’d like to see JBLU initially refill its bearish gap at around $8.25. The stock is also over-extended on RSI, MACD and Williams’ %R.
The last time JBLU became this technically oversold, it bounced from about $5.50 to $8.25. We’re looking for a similar move after its latest pullback.
Three, while the company’s guidance wasn’t so hot, it appears most of that negativity has been priced into the stock. For 2025, the company expects to post adjusted EPS of $1.70 to $2.70, as compared to expectations for $2.45. That overshadowed the company’s fourth quarter EPS loss of 21 cents, which beat by nine cents, and its revenue of $2.2 billion, which beat by $20 million.
Four, analysts at Deutsche Bank called JetBlue’s post-earnings pullback extreme. The firm added that the pullback was a bit much. It also has a buy rating on JBLU with a $9 price target.
Sincerely,
Ian Cooper
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