The shares of Halcon Resources Corporation (NYSE:HK) and JetBlue Airways Corporation (NASDAQ:JBLU) were among the active stocks of the last trading sessions. Halcon Resources Corporation (NYSE:HK) declined to -2.09% closing at the price of $3.74 whereas the shares of JetBlue Airways Corporation (NASDAQ:JBLU) soared 2.5% with the increase of 0.43 points closing at the price of $17.66. Halcon Resources Corporation has currently decrease -21.92% in its stock over the period of 6-months while its rival JetBlue Airways Corporation subtracted -8.26% in the previous 6-months.
Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.
Returns and Profitability
Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.
The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of Halcon Resources Corporation (NYSE:HK) is 59.8% while the ROI of JetBlue Airways Corporation (NASDAQ:JBLU) is 11.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, HK’s EBITDA Margin is -509.14 whereas JBLU’s is 4.55.
Both the profitability ratios suggest a mixed sentiment for Halcon Resources Corporation (NYSE:HK) and JetBlue Airways Corporation (NASDAQ:JBLU).
EPS & Surprise Factor
Halcon Resources Corporation (NYSE:HK) reported $0.15/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.05/share Thus beating the analyst Estimates with a Surprise Factor of 400 Percent. While, JetBlue Airways Corporation (NASDAQ:JBLU) reported EPS of $0.43/share in the last quarter. The analysts projected EPS of $0.42/share depicting a Surprise of 2.4 Percent.
Taking a look at Earnings per Share, Halcon Resources Corporation tends to be beating the analyst estimates more than JetBlue Airways Corporation. so HK is more profitable than JBLU.
Technical Analysis of Halcon Resources Corporation & JetBlue Airways Corporation
Moving average convergence divergence (MACD) shows that Halcon Resources Corporation (NYSE:HK) is on a PRICE RELATIVITY trend While JetBlue Airways Corporation (NASDAQ:JBLU) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Halcon Resources Corporation was in BEARISH territory and JetBlue Airways Corporation was in BULLISH territory.
HK’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While JBLU’s candle is BULLISH with HIGH.
EPS Growth Rate: HK’s 0% versus JBLU’s 13.67%
Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of Halcon Resources Corporation (NYSE:HK) is predicted at 0% while JetBlue Airways Corporation (NASDAQ:JBLU) stands at 13.67%. These numbers suggest that JBLU is more suitable investment in terms of EPS growth rate.
Financial Risk and Liquidity Concerns
The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of HK stands at 0.9 while JBLU is at 0.6 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.36.
The values of the both ratios suggest that one is more liquid and other investment is more risk free.
While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 2.3 for HK and 2.8 for JBLU which means HK has Hold rating whereas JBLU has Hold rating.
Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for HK is $8.58 which is 56.41% of its current price while JBLU has price target of 20.25 which is 12.79% of its current price.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
HK currently has price to earning P/E ratio of 0.94 whereas JBLU has 47.99 while the forward P/E ratio for the prior stands at 15.52 and for the later it depicts the value of 10.67.
The price to Book P/B for HK is 0.53, Price to Sale is at 2.7 and for JBLU these ratios stand at 1.23 and 0.73.