Is AerCap (AER) Stock Undervalued 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.04 right now. For comparison, its industry sports an average P/E of 8.61. Over the last 12 months, AER's Forward P/E has been as high as 8.14 and as low as 6.11, with a median of 7.28.

Another notable valuation metric for AER is its P/B ratio of 0.91. 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 stock's P/B looks attractive against its industry's average P/B of 0.96. Within the past 52 weeks, AER's P/B has been as high as 0.91 and as low as 0.70, with a median of 0.82.

Finally, our model also underscores that AER has a P/CF ratio of 3.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. AER's P/CF compares to its industry's average P/CF of 3.18. AER's P/CF has been as high as 3.06 and as low as 2.24, with a median of 2.64, all within the past year.

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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