Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Air Lease (AL). AL is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.7, which compares to its industry's average of 13.88. Over the past year, AL's Forward P/E has been as high as 9.73 and as low as 5.56, with a median of 6.85.
Finally, investors should note that AL has a P/CF ratio of 3.13. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.31. AL's P/CF has been as high as 3.31 and as low as 2.25, with a median of 2.95, all within the past year.
These are only a few of the key metrics included in Air Lease's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AL looks like an impressive value stock at the moment.
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Air Lease Corporation (AL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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