Should Value Investors Buy Aercap (AER) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Aercap (AER). AER is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.89. This compares to its industry's average Forward P/E of 7.67. AER's Forward P/E has been as high as 8.25 and as low as 5.12, with a median of 6.73, all within the past year.
AER is also sporting a PEG ratio of 1.11. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AER's industry currently sports an average PEG of 1.17. Over the past 52 weeks, AER's PEG has been as high as 1.11 and as low as 0.49, with a median of 0.78.
Value investors will likely look at more than just these metrics, but the above data helps show that Aercap is likely undervalued currently. And when considering the strength of its earnings outlook, AER sticks out at as one of the market's strongest value stocks.
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Aercap Holdings N.V. (AER) : Free Stock Analysis Report
