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Here's Why Investors Should Bet on Air Lease Stock Right Now

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Air Lease Corporation (AL - Free Report) benefits from the continuous growth in its fleet, profits earned from aircraft sales and higher end-of-lease revenues. Shareholder-friendly initiatives also bode well for the company. Due to these tailwinds, AL shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.

Let’s delve deeper.

AL: Key Tailwinds

Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share has been revised upward by 0.8% over the past 60 days for the current quarter. For 2025, the consensus mark for earnings per share has moved 2.4% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

Robust Price Performance: A look at the company’s price trend reveals that its shares have risen 17.6% over the past year, surpassing the  Zacks Transportation - Equipment and Leasing industry’s 16.3% decline.

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Positive Earnings Surprise History: Air Lease has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once in the remaining quarter, delivering an average surprise of 5.2%.

Solid Zacks Rank: AL currently carries a Zacks Rank #2 (Buy).

Bullish Industry Rank: The industry to which Air Lease belongs currently has a Zacks Industry Rank of 74 (out of 245). Such a favorable rank places it in the top 30% of Zacks Industries.Studies show that 50% of a stock’s price movement is directly related to the performance of the industry group it belongs to.

A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.

Growth Factors: Air Lease’s diversified fleet strategy remained evident in the first quarter of 2025, with 487 owned and 57 managed aircraft, and commitments to purchase 255 more through 2029. In the March-end quarter of 2025, the company took delivery of 14 new aircraft, including both narrowbody and widebody models, and sold 16 aircraft to third-party buyers, indicating a strong confidence in long-term demand recovery and growth in global air travel. The mix of Boeing and Airbus orders also reflects a diversified risk strategy across manufacturers.

Capital investments reached $800 million, mainly in the latter half of the quarter. These actions reflect a balanced approach of growth and liquidity management, positioning AL to capitalize on the global air travel recovery.

Moreover, consistent shareholder-friendly moves in the form of dividend payments look encouraging and positively impact the company's bottom line. With the quarterly dividend of 22 cents per share (annualized 88 cents per share), AL’s dividend yield is currently pegged at 1.54% in the first quarter of 2025. Dividend-paying stocks like AL are generally safe bets for creating wealth, as these payouts act as a hedge against economic uncertainty, which characterizes current times.

Other Stocks to Consider

Investors interested in the Transportation sector may also consider Copa Holdings (CPA - Free Report) and Ryanair (RYAAY - Free Report) .

CPA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CPA has an expected earnings growth rate of 14.3% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.5%. Shares of CPA have risen 19.2% year to date.

RYAAY currently sports a Zacks Rank of 1.

RYAAY has an expected earnings growth rate of 30.5% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average beat of 46.6%. Shares of RYAAY have rallied 26.8% year to date.


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