11 Worst Aviation Stocks to Buy According to Analysts

7. JetBlue Airways Corporation (NASDAQ:JBLU)

Average Analyst Price Target Upside as of September 16: -0.69%

Number of Hedge Fund Holders: 19

JetBlue Airways Corporation (NASDAQ:JBLU) is a prominent U.S.-based airline headquartered in Long Island City, Queens, New York. It was founded in 1998 and has since grown into a major player in the aviation industry. The airline operates over 1,000 daily flights and services over 100 destinations across the Americas and Europe.

The company differentiates itself from competitors through a focus on providing high-quality service and amenities, such as in-flight entertainment and comfortable seating, while maintaining a low-cost travel model. The airline is also investing in innovative technologies and sustainable practices, including ventures in hydrogen-powered flight and carbon capture.

JetBlue’s (NASDAQ:JBLU) shares were owned by 19 hedge funds in the second quarter and their holdings were valued at $156.894 million. With 17.727 million shares worth $107.957 million, Icahn Capital LP is the company’s top shareholder as of Q2.

Despite JetBlue (NASDAQ:JBLU) being a well-known name in the industry, the company is currently one of the worst stocks according to analysts. Out of 14 analysts, 9 keep a Hold rating for the stock and 3 recommend a Sell rating for the stock. The average price target of $5.75 is 0.69% below the company’s stock price on September 16.

On September 6, TipRanks reported that Thomas Fitzgerald from TD Cowen maintained a Hold rating on the company with a target price of $6.00. The analyst cited a mix of positive and negative factors for the company.

On the positive side, JetBlue (NASDAQ:JBLU) has seen stronger-than-expected bookings, especially in Latin America, and has made progress in revenue initiatives. Operational performance has also improved, with better on-time reliability and effective control of non-fuel costs, aided by lower jet fuel prices.

On the downside, Fitzgerald noted that the company’s updated guidance indicates higher interest expenses for the third quarter and the full year of 2024, which may continue into the fourth quarter. Additionally, the transition of Payroll Support Program loans to variable interest rates in the coming years could further impact financial stability.