6 Reasons Why Investors Should Buy Air Lease (AL) Stock Now
Air Lease Corporation (AL) has performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes Air Lease an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run in the past three months. Shares of Air Lease have gained 21% in the past three months, outperforming the 13.4% rise of the industry it belongs to.
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Solid Rank & VGM Score: Air Lease currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Air Lease’s full-year 2024 earnings has moved up 27.7% year over year.
Positive Earnings Surprise History: Air Lease has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 20.15%.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For first-quarter 2024, AL’s earnings are expected to grow 31.13% year over year. For the full year 2024, AL’s earnings are expected to grow 29.77% year over year.
Growth Factors: Air Lease is benefiting from the continuous growth in its fleet and an increase in sales activity. The increase in aircraft sales, trading and other revenues benefited AL. As of Dec 31, 2023, Air Lease’s fleet included 463 owned aircraft and 78 managed aircraft. It had commitments to purchase 334 aircraft from Boeing and Airbus for delivery through 2029.
Consistent shareholder-friendly moves instill investor confidence and positively impact the company's bottom line.
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Transportation sector are GATX Corporation GATX and SkyWest, Inc. SKYW. Each stock presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
GATX has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 16.47%.
The Zacks Consensus Estimate for 2024 earnings has been revised 8.9% upward over the past 90 days. GATX has an expected earnings growth rate of 6.51% for 2024. Shares of GATX have gained 26% in the past year.
SkyWest's fleet modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 27.3% over the past 90 days. Shares of SKYW have surged 242.3% in the past year.
SKYW has an expected earnings growth rate of more than 100% for 2024. SKYW delivered a trailing four-quarter earnings surprise of 128.02%, on average.
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Air Lease Corporation (AL) : Free Stock Analysis Report
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