What Should Investors Know About Air Lease Corporation’s (AL) Growth?
Analysts covering Air Lease Corporation (NYSE:AL) are predicting double-digit earnings per share growth of 18.53% over the following three years. With the recent EPS being $3.653, expected growth will push the upcoming EPS to $4.33. I am going to look at the latest data on AL to assess whether this expected growth is reasonable. Check out our latest analysis for Air Lease
How is Air Lease going to perform in the future?
AL is covered by 9 analysts who by consensus are expecting positive earnings, estimated to rise from current levels of $3.653 to $4.33 in a few years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 18.53% over the next few years. During the same time and profits (net income) are predicted to slightly grow from $376M to $446M in the next couple of years, growing by 18.53%. However, margins look rather unappealing at the current levels of revenue and earnings.
Is the growth built on solid basis?
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is illustrative of future headwinds or whether the company continues to grapple with higher growth. AL delivered a significantly high triple-digit growth rate in the past couple of years, compared to the less exciting rate expected this year. This may indicate a more sustainable level of growth as the company comes off a high-growth period. On the other hand, a more pessimistic outlook questions the company’s ability to continue as a high performer.
Next Steps:
For AL, I’ve compiled three pertinent aspects you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for AL’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of AL? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
