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Should Value Investors Buy Aercap (AER) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now 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 P/E ratio of 5.78 right now. For comparison, its industry sports an average P/E of 6.56. Over the last 12 months, AER's Forward P/E has been as high as 8.25 and as low as 5.55, with a median of 6.94.

We also note that AER holds a PEG ratio of 1.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AER's industry has an average PEG of 1.13 right now. Over the past 52 weeks, AER's PEG has been as high as 1.29 and as low as 0.62, with a median of 0.91.

We should also highlight that AER has a P/B ratio of 0.83. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.85. Over the past year, AER's P/B has been as high as 0.99 and as low as 0.66, with a median of 0.91.

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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