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Should Value Investors Buy Air Lease (AL) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Air Lease (AL - Free Report) . AL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.05, while its industry has an average P/E of 16.28. Over the last 12 months, AL's Forward P/E has been as high as 9.61 and as low as 1.77, with a median of 6.89.

AL is also sporting a PEG ratio of 0.64. 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. AL's industry has an average PEG of 0.99 right now. Within the past year, AL's PEG has been as high as 2.94 and as low as 0.19, with a median of 0.66.

Another valuation metric that we should highlight is AL's P/B ratio of 0.82. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 0.92. Within the past 52 weeks, AL's P/B has been as high as 0.96 and as low as 0.22, with a median of 0.60.

Finally, investors will want to recognize that AL has a P/CF ratio of 3.55. 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 4.93. Within the past 12 months, AL's P/CF has been as high as 3.99 and as low as 0.90, with a median of 2.48.

Value investors will likely look at more than just these metrics, but the above data helps show that Air Lease is likely undervalued currently. And when considering the strength of its earnings outlook, AL sticks out at as one of the market's strongest value stocks.


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