2-Star Stocks Poised to Plunge: JetBlue?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, airline operator JetBlue Airways (NAS: JBLU) has received a distressing two-star ranking.

With that in mind, let's take a closer look at JetBlue's business and see what CAPS investors are saying about the stock right now.

JetBluefacts

Headquarters (founded)Forest Hills, N.Y. (1998)
Market Cap$1.4 billion
IndustryAirlines
Trailing-12-Month Revenue$4.5 billion
ManagementCo-Founder/CEO David Barger
CFO Mark Powers
Return on Equity (average, past 3 years)5.1%
Cash/Debt$1.2 billion / $3.1 billion
CompetitorsAMR
Southwest Airlines
United Continental Holdings

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 18% of the 1,158 members who have rated JetBlue believe the stock will underperform the S&P 500 going forward.

Just last month, one of those bears, TrojanFan, explained why JetBlue shares would continue to stay grounded:

Same thinking as my underperform pick on [Southwest]. All airlines stocks are ultimately doomed to fail (failure defined as Chapter 11 reorganization) or at the very least underperform the broader market averages on a sustained basis. Airlines is a horrible sector and the sustained oil price shock that we're in store for will not be kind to the industry at all.

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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Southwest. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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