Aircastle Ltd

Aircastle Ltd (AYR - Snapshot Report) recently turned higher with the market, moving back within striking distance of its 52-week high after posting strong Q1 results that came in ahead of expectations. With estimates on the rise and a compelling valuation, this Zacks #1 stock is flying high with momentum.

Company Description

Aircastle Ltd, through its subsidiaries, engages in the acquisition, lease and sale of high-utility commercial jet aircraft to passenger and cargo airlines worldwide. The company was founded in 2004 and has a market cap of $950 million.

AYR has been a big winner in 2011, hitting a new multi-year high in early May after reporting strong first-quarter results that came in ahead of expectations.

First-Quarter Results

Revenue for the period was up 21% from last year to $157 million. Earnings also looked good, coming in at 42 cents, 2.5% ahead of the Zacks Consensus Estimate. The company noted that the revenue gains came on aircraft acquisitions, increased lease volume and higher maintenance fees.

Buying Shares Back

Aircastle has also been busy returning value to its shareholders, buying a total of 2.9 million shares this year for $35 million.

Financial Profile

On the financial front, AYR is in a capital intensive business, which shows up in its total debt load of $2.7 billion. But its cash position has been on the upswing, with cash and short-term investments up $80 million from last year to $432 million.

Estimates

We saw some bullish movement in estimates off the good quarter, with the current year jumping 17 cents to $1.23.

Valuation

But in spite of the gains AYR still looks attractively valued, trading with a forward P/E of 10X.

12-Month Chart

On the chart, shares have been trending higher for most of the last year, recently jumping to a new multi-year high on the good quarter. Look for support from the trend line on any weakness. Take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.

Read the full analyst report on AYR