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Air Lease (AL) Rises 10.5% in the Past 6 Months: Here's Why
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Shares of Air Lease Corporation (AL - Free Report) have increased 10.5% in the past six months primarily due to strong liquidity and dividend hikes.
Image Source: Zacks Investment Research
Reasons for Upside
We are impressed by Air Lease’s endeavors to reward shareholders. The company has an impressive dividend payment history. In November, the company’s board approved a dividend hike of approximately 15.6% to 18.5 cents per share (annually: 74 cents). This marks the company’s 9th dividend increase since February 2013, when it began distributing dividends. Such moves boost shareholder’s confidence.
At the end of the third quarter, Air Lease had a strong liquidity position of $8.4 billion, which should help the company tackle coronavirus-induced challenges efficiently. The carrier's current ratio (a measure of liquidity) at the end of the same period was 3.49, well above 2.32 recorded at the end of second-quarter 2021.
Favorable Estimate Revisions
Driven by the above tailwinds, the Zacks Consensus Estimate for its current-year earnings has increased 4.2% to $4.47 per share in the past 60 days.
The long-term expected earnings per share (three to five years) growth rate for J.B. Hunt is pegged at 15%. J.B. Hunt is benefiting from strong performances by all its segments. The Dedicated Contract Services (DCS) unit is being aided by fleet-productivity improvement and a rise in average revenue-producing trucks. The Integrated Capacity Solutions (ICS) unit is gaining from a favorable customer freight mix as well as higher contractual and spot rates.
JBHT’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has rallied 33.5% in the past year. J.B. Hunt currently carries a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for FedEx is pegged at 12%. FedEx is benefitting from a surge in e-commerce demand amid the pandemic.
FDX exited first-quarter fiscal 2022 with cash and equivalents of $6,853 million, much higher than its current debt of $125 million. Driven by the tailwinds, the stock has moved up 7% in the past month. FedEx currently carries a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for Schneider is pegged at 20.7%. Schneider benefits from a strong performance by the Intermodal and Logistics units.
SNDR’s third-quarter cash balance is also encouraging. Driven by the tailwinds, the stock has moved up 15.3% in the past year. Schneider currently carries a Zacks Rank #2.
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Air Lease (AL) Rises 10.5% in the Past 6 Months: Here's Why
Shares of Air Lease Corporation (AL - Free Report) have increased 10.5% in the past six months primarily due to strong liquidity and dividend hikes.
Reasons for Upside
We are impressed by Air Lease’s endeavors to reward shareholders. The company has an impressive dividend payment history. In November, the company’s board approved a dividend hike of approximately 15.6% to 18.5 cents per share (annually: 74 cents). This marks the company’s 9th dividend increase since February 2013, when it began distributing dividends. Such moves boost shareholder’s confidence.
At the end of the third quarter, Air Lease had a strong liquidity position of $8.4 billion, which should help the company tackle coronavirus-induced challenges efficiently. The carrier's current ratio (a measure of liquidity) at the end of the same period was 3.49, well above 2.32 recorded at the end of second-quarter 2021.
Favorable Estimate Revisions
Driven by the above tailwinds, the Zacks Consensus Estimate for its current-year earnings has increased 4.2% to $4.47 per share in the past 60 days.
Zacks Rank & Other Stocks to Consider
Air Lease currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors interested in the broader Zacks Transportation sector can also consider stocks like J.B. Hunt Transport Services (JBHT - Free Report) , FedEx Corporation (FDX - Free Report) and Schneider National (SNDR - Free Report) .
The long-term expected earnings per share (three to five years) growth rate for J.B. Hunt is pegged at 15%. J.B. Hunt is benefiting from strong performances by all its segments. The Dedicated Contract Services (DCS) unit is being aided by fleet-productivity improvement and a rise in average revenue-producing trucks. The Integrated Capacity Solutions (ICS) unit is gaining from a favorable customer freight mix as well as higher contractual and spot rates.
JBHT’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has rallied 33.5% in the past year. J.B. Hunt currently carries a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for FedEx is pegged at 12%. FedEx is benefitting from a surge in e-commerce demand amid the pandemic.
FDX exited first-quarter fiscal 2022 with cash and equivalents of $6,853 million, much higher than its current debt of $125 million. Driven by the tailwinds, the stock has moved up 7% in the past month. FedEx currently carries a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for Schneider is pegged at 20.7%. Schneider benefits from a strong performance by the Intermodal and Logistics units.
SNDR’s third-quarter cash balance is also encouraging. Driven by the tailwinds, the stock has moved up 15.3% in the past year. Schneider currently carries a Zacks Rank #2.