If you are wondering whether JetBlue Airways is a bargain or a value trap at around US$5.04 per share, it helps to break the story into what the market has been pricing in and what the underlying numbers say.
Over the past week the stock has seen an 8.7% decline, although it is still up 11.3% over the last 30 days and 9.8% year to date. However, the 1 year and 3 year returns of 17.4% and 38.9% declines, plus a 66.4% decline over 5 years, show how tough the longer term has been for shareholders.
This recent volatility is playing out against ongoing headlines about the broader US airline sector, including continued discussion around capacity, demand trends and cost pressures. All of these factors can influence how investors think about…
