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Aercap (AER) Soars to a 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Aercap Holdings N.V. (AER - Free Report) ? Shares have been on the move with the stock up 6.7% over the past month. AER hit a new 52-week high of $56.11 in the previous session. Aercap Holdings has gained 5.1% since the start of the year compared to the -0.1% move for the Finance sector and the 8.8% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 3, 2018, Aercap Holdings reported EPS of $1.72 versus the Zacks Consensus Estimate of $1.54 while it missed the consensus revenue estimate by 0.35%.
For the current fiscal year, Aercap Holdings is expected to post earnings of $6.33 per share on $4.88 billion in revenues. This represents a 0% change in EPS on a -3.15% change in revenues. For the next fiscal year, the company is expected to earn $6.71 per share on $5.12 billion in revenues. This represents a year-over-year change of 6.06% and 5.05%, respectively.
Valuation Metrics
Aercap Holdings may be at a 52-week high right now, but what might the future hold for AER? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Aercap Holdings has a Value Score of A. The stock's Growth and Momentum Scores are D and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 8.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 3.3X versus its peer group's average of 3.3X. Additionally, the stock has a PEG ratio of 0.73. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Aercap Holdings currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Aercap Holdings fits the bill. Thus, it seems as though AER shares could have a bit more room to run in the near term.
How Does Aercap Holdings Stack Up to the Competition?
Shares of Aercap Holdings have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Enova International (ENVA - Free Report) , Virtu Financial (VIRT - Free Report) , and First Cash (FCFS - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 4% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AER, even beyond its own solid fundamental situation.
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Aercap (AER) Soars to a 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Aercap Holdings N.V. (AER - Free Report) ? Shares have been on the move with the stock up 6.7% over the past month. AER hit a new 52-week high of $56.11 in the previous session. Aercap Holdings has gained 5.1% since the start of the year compared to the -0.1% move for the Finance sector and the 8.8% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 3, 2018, Aercap Holdings reported EPS of $1.72 versus the Zacks Consensus Estimate of $1.54 while it missed the consensus revenue estimate by 0.35%.
For the current fiscal year, Aercap Holdings is expected to post earnings of $6.33 per share on $4.88 billion in revenues. This represents a 0% change in EPS on a -3.15% change in revenues. For the next fiscal year, the company is expected to earn $6.71 per share on $5.12 billion in revenues. This represents a year-over-year change of 6.06% and 5.05%, respectively.
Valuation Metrics
Aercap Holdings may be at a 52-week high right now, but what might the future hold for AER? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Aercap Holdings has a Value Score of A. The stock's Growth and Momentum Scores are D and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 8.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 3.3X versus its peer group's average of 3.3X. Additionally, the stock has a PEG ratio of 0.73. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Aercap Holdings N.V. Price and Consensus
Aercap Holdings N.V. Price and Consensus | Aercap Holdings N.V. Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Aercap Holdings currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Aercap Holdings fits the bill. Thus, it seems as though AER shares could have a bit more room to run in the near term.
How Does Aercap Holdings Stack Up to the Competition?
Shares of Aercap Holdings have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Enova International (ENVA - Free Report) , Virtu Financial (VIRT - Free Report) , and First Cash (FCFS - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 4% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AER, even beyond its own solid fundamental situation.