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Is Aircastle (AYR) Stock Undervalued Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Aircastle (AYR - Free Report) . AYR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.79, which compares to its industry's average of 14.61. Over the past 52 weeks, AYR's Forward P/E has been as high as 11.52 and as low as 8.25, with a median of 9.08.

We also note that AYR holds a PEG ratio of 0.88. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AYR's PEG compares to its industry's average PEG of 1.43. Over the past 52 weeks, AYR's PEG has been as high as 1.70 and as low as 0.83, with a median of 0.91.

Another notable valuation metric for AYR is its P/B ratio of 0.85. 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 attractive against its industry's average P/B of 1.63. AYR's P/B has been as high as 1.04 and as low as 0.79, with a median of 0.86, over the past year.

Finally, our model also underscores that AYR has a P/CF ratio of 3.09. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 5.24. Within the past 12 months, AYR's P/CF has been as high as 4.10 and as low as 2.92, with a median of 3.38.

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




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