Should Value Investors Buy Aercap (AER) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Aercap (AER). AER is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.31, while its industry has an average P/E of 7.02. Over the past 52 weeks, AER's Forward P/E has been as high as 8.25 and as low as 5.75, with a median of 6.86.
AER is also sporting a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AER's PEG compares to its industry's average PEG of 0.53. Over the past 52 weeks, AER's PEG has been as high as 1.29 and as low as 0.46, with a median of 1.02.
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
