Is AerCap (AER) a Great Value Stock Right Now?

AER

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is AerCap (AER - Free Report) . AER is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.97, while its industry has an average P/E of 7.88. AER's Forward P/E has been as high as 8.46 and as low as 5.58, with a median of 7.21, all within the past year.

We should also highlight that AER has a P/B ratio of 0.79. The P/B ratio pits a stock's market value against 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 0.83. Within the past 52 weeks, AER's P/B has been as high as 0.95 and as low as 0.61, with a median of 0.83.

Finally, investors will want to recognize that AER has a P/CF ratio of 2.65. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. AER's P/CF compares to its industry's average P/CF of 2.81. Over the past 52 weeks, AER's P/CF has been as high as 3.16 and as low as 2.05, with a median of 2.63.

These are only a few of the key metrics included in AerCap's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AER looks like an impressive value stock at the moment.

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