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Are Investors Undervaluing Aercap (AER) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Aercap (AER - Free Report) . AER is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.43, which compares to its industry's average of 8.17. Over the last 12 months, AER's Forward P/E has been as high as 108.78 and as low as 5.12, with a median of 6.78.
Investors will also notice that AER has a PEG ratio of 0.91. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AER's PEG compares to its industry's average PEG of 0.98. AER's PEG has been as high as 5.86 and as low as 0.28, with a median of 0.49, all within the past year.
We should also highlight that AER has a P/B ratio of 0.94. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1. Over the past year, AER's P/B has been as high as 1.01 and as low as 0.62, with a median of 0.79.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AER has a P/S ratio of 2.22. This compares to its industry's average P/S of 2.82.
Finally, investors will want to recognize that AER has a P/CF ratio of 9.61. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.72. Over the past 52 weeks, AER's P/CF has been as high as 13.90 and as low as 2.74, with a median of 8.30.
These are just a handful of the figures considered in Aercap's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AER is an impressive value stock right now.
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Are Investors Undervaluing Aercap (AER) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Aercap (AER - Free Report) . AER is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.43, which compares to its industry's average of 8.17. Over the last 12 months, AER's Forward P/E has been as high as 108.78 and as low as 5.12, with a median of 6.78.
Investors will also notice that AER has a PEG ratio of 0.91. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AER's PEG compares to its industry's average PEG of 0.98. AER's PEG has been as high as 5.86 and as low as 0.28, with a median of 0.49, all within the past year.
We should also highlight that AER has a P/B ratio of 0.94. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1. Over the past year, AER's P/B has been as high as 1.01 and as low as 0.62, with a median of 0.79.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AER has a P/S ratio of 2.22. This compares to its industry's average P/S of 2.82.
Finally, investors will want to recognize that AER has a P/CF ratio of 9.61. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.72. Over the past 52 weeks, AER's P/CF has been as high as 13.90 and as low as 2.74, with a median of 8.30.
These are just a handful of the figures considered in Aercap's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AER is an impressive value stock right now.