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Are Investors Undervaluing Fly Leasing (FLY) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Fly Leasing . FLY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.64 right now. For comparison, its industry sports an average P/E of 10.36. Over the past year, FLY's Forward P/E has been as high as 6.09 and as low as 3.81, with a median of 4.66.

We also note that FLY holds a PEG ratio of 0.39. 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 0.84. Within the past year, FLY's PEG has been as high as 0.61 and as low as 0.38, with a median of 0.51.

Another notable valuation metric for FLY is its P/B ratio of 0.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.07. FLY's P/B has been as high as 0.76 and as low as 0.43, with a median of 0.57, over the past year.

Finally, our model also underscores that FLY has a P/CF ratio of 1.99. 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 6.55. Over the past year, FLY's P/CF has been as high as 2.34 and as low as 1.38, with a median of 1.72.

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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