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Air Lease Stock Soars 202.1% in the Past 3 Months: Here's Why

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Shares of Air Lease Corporation (AL - Free Report) have skyrocketed 202.1% over the past three months, comprehensively outperforming the industry’s 46.4% growth.

Let’s delve deeper to unearth the reasons for this astounding price performance in these coronavirus-ravaged times.

The fortunes of Air Lease are tied to the airline industry. This is because this Los Angeles, CA-based company leases commercial jets to airline players after purchasing the same from manufacturers. Naturally, the fact that things are looking up for the airline industry owing to signs of recovery in air-travel demand bodes well for Air Lease.

We are also encouraged by the impressive revenues from rentals of flight equipment at Air Lease. Notably, most of the airline revenues are derived from rental of flight equipment. The segmental revenues rose 9% in the first quarter of 2020 despite the coronavirus chaos. With air-travel demand gradually returning to normalcy, revenues from rental of flight equipment are likely to be strong in the June quarter as well, thereby boosting Air Lease’s top line.

Steady growth in Air Lease’s fleet is also appreciative. During the March quarter, the company received delivery of eight aircraft and purchased one from the secondary market, which represented $709 million in aircraft investments.

Estimate Revision & Momentum Score

The fact that the Zacks Consensus Estimate for current-quarter earnings has been revised 35% upward over the past 60 days, is indicative of the bullish sentiment surrounding this Zacks Rank #2 (Buy) stock. Moreover, the stock has a Momentum Score of B, highlighting its short-term attractiveness.

Other Key Picks

Investors interested in the Zacks Transportation sector may also consider some other top-ranked stocks like Scorpio Tankers (STNG - Free Report) , Teekay Tankers (TNK - Free Report) and Nordic American Tankers (NAT - Free Report) , all presently carrying the same Zacks Rank as Air Lease. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Scorpio Tankers’ current-year earnings has been revised upward in excess of 100% in the past 60 days.

The Zacks Consensus Estimate for Teekay Tanker’s current-year earnings has been revised 35.6% upward in the past 60 days.

The Zacks Consensus Estimate for Nordic American Tankers’ current-year earnings has moved 14.1% north in the past 60 days.

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