U.S. markets close in 1 hour 8 minutes
  • S&P 500

    4,143.72
    -19.57 (-0.47%)
     
  • Dow 30

    34,178.96
    -148.83 (-0.43%)
     
  • Nasdaq

    13,357.23
    -21.82 (-0.16%)
     
  • Russell 2000

    2,227.17
    +0.05 (+0.00%)
     
  • Crude Oil

    65.44
    -0.83 (-1.25%)
     
  • Gold

    1,869.30
    +1.70 (+0.09%)
     
  • Silver

    28.33
    +0.06 (+0.22%)
     
  • EUR/USD

    1.2231
    +0.0074 (+0.61%)
     
  • 10-Yr Bond

    1.6470
    +0.0070 (+0.43%)
     
  • GBP/USD

    1.4188
    +0.0051 (+0.36%)
     
  • USD/JPY

    108.8680
    -0.3320 (-0.30%)
     
  • BTC-USD

    42,674.20
    -1,007.52 (-2.31%)
     
  • CMC Crypto 200

    1,196.34
    -56.80 (-4.53%)
     
  • FTSE 100

    7,034.24
    +1.39 (+0.02%)
     
  • Nikkei 225

    28,406.84
    +582.01 (+2.09%)
     

Price Over Earnings Overview: Air Lease

  • Oops!
    Something went wrong.
    Please try again later.
Benzinga Insights
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

 

Right now, Air Lease Inc. (NYSE: AL) share price is at $41.35, after a 1.01% decrease. Over the past month, the stock increased by 3.89%, but over the past year, it actually decreased by 14.58%. With questionable short-term performance like this, and great long-term performance, long-term shareholders might want to start looking into the company's price-to-earnings ratio. 

The stock is currently higher from its 52 week low by 391.68%. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Trading Companies & Distributors stocks, and capitalize on the lower share price observed over the year. 

The P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company’s current performance against its past earnings, historical data and aggregate market data for the industry or the indices, such as S&P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also shows that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future. 

View more earnings on AL

Depending on the particular phase of a business cycle, some industries will perform better than others. 

Compared to the aggregate P/E ratio of the 47.27 in the Trading Companies & Distributors industry, Air Lease Inc. has a lower P/E ratio of 8.58. Shareholders might be inclined to think that the stock might perform worse than its industry peers. It’s also possible that the stock is undervalued. 

P/E ratio is not always a great indicator of the company's performance. Depending on the earnings makeup of a company, investors can become unable to attain key insights from trailing earnings.

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.