Should Value Investors Buy Air Lease (AL) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 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 company to watch right now is Air Lease (AL). AL is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.85 right now. For comparison, its industry sports an average P/E of 12.45. AL's Forward P/E has been as high as 9.73 and as low as 5.87, with a median of 7.59, all within the past year.

Another notable valuation metric for AL is its P/B ratio of 0.86. 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 2.13. Over the past year, AL's P/B has been as high as 0.87 and as low as 0.57, with a median of 0.71.

Finally, investors should note that AL has a P/CF ratio of 3.08. 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 5.52. Over the past 52 weeks, AL's P/CF has been as high as 3.31 and as low as 2.25, with a median of 2.98.

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

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This article originally published on Zacks Investment Research (zacks.com).

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