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Are Investors Undervaluing AerCap (AER) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 stock to keep an eye on is AerCap (AER - Free Report) . AER is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.24, which compares to its industry's average of 8.07. Over the past 52 weeks, AER's Forward P/E has been as high as 8.72 and as low as 5.58, with a median of 7.31.
Another notable valuation metric for AER 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 0.90. Within the past 52 weeks, AER's P/B has been as high as 0.99 and as low as 0.61, with a median of 0.84.
Finally, we should also recognize that AER has a P/CF ratio of 2.70. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 2.86. Over the past year, AER's P/CF has been as high as 3.25 and as low as 2.05, with a median of 2.69.
Value investors will likely look at more than just these metrics, but the above data helps show that AerCap is likely undervalued currently. And when considering the strength of its earnings outlook, AER sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing AerCap (AER) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 stock to keep an eye on is AerCap (AER - Free Report) . AER is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.24, which compares to its industry's average of 8.07. Over the past 52 weeks, AER's Forward P/E has been as high as 8.72 and as low as 5.58, with a median of 7.31.
Another notable valuation metric for AER 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 0.90. Within the past 52 weeks, AER's P/B has been as high as 0.99 and as low as 0.61, with a median of 0.84.
Finally, we should also recognize that AER has a P/CF ratio of 2.70. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 2.86. Over the past year, AER's P/CF has been as high as 3.25 and as low as 2.05, with a median of 2.69.
Value investors will likely look at more than just these metrics, but the above data helps show that AerCap is likely undervalued currently. And when considering the strength of its earnings outlook, AER sticks out at as one of the market's strongest value stocks.