Back to top

Should Value Investors Buy Fly Leasing (FLY) Stock?

Read MoreHide Full Article

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

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 holds a P/E ratio of 4.42, while its industry has an average P/E of 10.68. FLY's Forward P/E has been as high as 6.26 and as low as 3.81, with a median of 4.96, all within the past year.

Investors should also note that FLY holds a PEG ratio of 0.39. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FLY's industry has an average PEG of 1.02 right now. Over the past 52 weeks, FLY's PEG has been as high as 0.63 and as low as 0.38, with a median of 0.56.

Another valuation metric that we should highlight is FLY's P/B ratio of 0.63. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.07. Over the past year, FLY's P/B has been as high as 0.76 and as low as 0.43, with a median of 0.57.

Finally, investors should note that FLY has a P/CF ratio of 1.84. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.85. Over the past year, FLY's P/CF has been as high as 2.59 and as low as 1.38, with a median of 1.79.

These are just a handful of the figures considered in Fly Leasing's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FLY is an impressive value stock right now.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Fly Leasing Limited (FLY) - free report >>

Published in