JetBlue Airways (NASDAQ:JBLU) adds US$115m to market cap in the past 7 days, though investors from five years ago are still down 62%
Statistically speaking, long term investing is a profitable endeavour. But unfortunately, some companies simply don't succeed. For example the JetBlue Airways Corporation (NASDAQ:JBLU) share price dropped 62% over five years. That's not a lot of fun for true believers. And it's not just long term holders hurting, because the stock is down 33% in the last year. Furthermore, it's down 12% in about a quarter. That's not much fun for holders.
While the stock has risen 5.1% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.
See our latest analysis for JetBlue Airways
Because JetBlue Airways made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last five years JetBlue Airways saw its revenue shrink by 0.07% per year. That's not what investors generally want to see. The share price decline of 10% compound, over five years, is understandable given the company is losing money, and revenue is moving in the wrong direction. We don't think anyone is rushing to buy this stock. Ultimately, it may be worth watching - should revenue pick up, the share price might follow.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
JetBlue Airways is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling JetBlue Airways stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
While the broader market gained around 4.2% in the last year, JetBlue Airways shareholders lost 33%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 10% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for JetBlue Airways (1 is a bit unpleasant!) that you should be aware of before investing here.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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