Back to top

Image: Bigstock

Is AerCap (AER) a Great Value Stock Right Now?

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

AerCap (AER - Free Report) is a stock many investors are watching right now. AER is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 5.17, while its industry has an average P/E of 8.77. Over the last 12 months, AER's Forward P/E has been as high as 8.14 and as low as 1.94, with a median of 7.28.

Another notable valuation metric for AER is its P/B ratio of 0.43. 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 0.96. Over the past 12 months, AER's P/B has been as high as 0.91 and as low as 0.21, with a median of 0.79.

Finally, we should also recognize that AER has a P/CF ratio of 1.39. 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 3.18. Over the past year, AER's P/CF has been as high as 3.06 and as low as 0.71, with a median of 2.65.

These are only a few of the key metrics included in AerCap'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, AER looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


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


Aercap Holdings N.V. (AER) - free report >>

Published in