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Should Value Investors Buy Air Lease (AL) Stock?

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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, 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.

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 stock to keep an eye on is Air Lease (AL - Free Report) . AL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.14, while its industry has an average P/E of 14.77. AL's Forward P/E has been as high as 9.73 and as low as 5.56, with a median of 6.79, all within the past year.

Investors should also recognize that AL has a P/B ratio of 0.83. Investors use the P/B ratio to look at a stock's market value versus 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 1.91. Over the past year, AL's P/B has been as high as 0.83 and as low as 0.57, with a median of 0.70.

Finally, investors will want to recognize that AL has a P/CF ratio of 3.24. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.26. Over the past 52 weeks, AL's P/CF has been as high as 3.31 and as low as 2.25, with a median of 2.93.

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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