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Are Investors Undervaluing Fly Leasing (FLY) 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 value investors might notice is Fly Leasing (FLY - Free Report) . FLY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 4.12. This compares to its industry's average Forward P/E of 11.08. Over the past 52 weeks, FLY's Forward P/E has been as high as 6.72 and as low as 3.85, with a median of 5.75.

We also note that FLY holds a PEG ratio of 0.41. 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. FLY's PEG compares to its industry's average PEG of 1.09. Over the past 52 weeks, FLY's PEG has been as high as 0.67 and as low as 0.38, with a median of 0.58.

Investors should also recognize that FLY has a P/B ratio of 0.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.27. Over the past year, FLY's P/B has been as high as 0.77 and as low as 0.44, with a median of 0.68.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FLY has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.2.

Finally, our model also underscores that FLY has a P/CF ratio of 1.57. 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 4.10. Over the past 52 weeks, FLY's P/CF has been as high as 2.61 and as low as 1.46, with a median of 2.23.

These are only a few of the key metrics included in Fly Leasing's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FLY looks like an impressive value stock at the moment.




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