Here's Why You Should Add Air Lease Stock to Your Portfolio Now

Air Lease Corporation (AL) is benefiting from multiple tailwinds, which, we believe, have made it an impressive investment option.

Against this backdrop, let’s look at the factors that make this stock an attractive pick.

What Makes Air Lease an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had a solid run on the bourse over the past three months. Shares of AL have gained 18.5% over the past three months, surpassing the  Zacks Transportation - Equipment and Leasing industry’s 5.3% surge.

AL Stock Three-Month Price Comparison

Solid Zacks Rank & VGM Score: Air Lease currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.

Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share has been revised upward by 0.76% over the past 60 days for the current quarter. For 2025, the consensus mark for earnings per share has moved 2.37% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

Positive Earnings Surprise History: AL has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in the remaining quarter. The average beat is 5.16%.

Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For second-quarter 2025, AL’s earnings are expected to increase 8.13% year over year. For 2025, AL’s earnings are expected to improve 9.55% year over year.

Bullish Industry Rank: The industry to which Air Lease belongs currently has a Zacks Industry Rank of 46 (out of 245). Such a favorable rank places it in the top 19% of Zacks Industries. Studies show that 50% of a stock’s price movement is directly related to the performance of the industry group it belongs to.

A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.

Growth Factors: Air Lease has a globally diversified customer base of 116 airlines in 58 different countries. More than 95% of AL's business revenues originate from airlines located outside of the United States. Steady growth in the fleet, profits earned from aircraft sales and higher end-of-lease revenues contribute to AL's top-line growth. In the first quarter of 2025, AL witnessed $61 million in gains from the sale of 16 aircraft. As of March 31, 2025, Air Lease owned 487 aircraft with a net book value of $28.6 billion. The total fleet size at the first-quarter end was 804.

Consistent shareholder-friendly moves in the form of dividend payments look encouraging and positively impact the company's bottom line.With the quarterly dividend of 22 cents per share (annualized 88 cents per share), AL’s dividend yield is currently pegged at 1.56%. Dividend-paying stocks like AL are generally safe bets for creating wealth, as these payouts act as a hedge against economic uncertainty, which characterizes current times.

Other Stocks to Consider

Investors interested in the Transportation sector may also consider Copa Holdings CPA and SkyWest, Inc. (SKYW).

CPA currently flaunts a Zacks Rank #1.  You can see the complete list of today’s Zacks #1 Rank stocks here.

CPA has an expected earnings growth rate of 14.3% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.5%. Shares of CPA have risen 24.2% year to date.

SkyWest, founded in 1972, is based in St. George and operates regional jets for major U.S. airlines. SKYW is the holding company for SkyWest Airlines, SkyWest Charter and SkyWest Leasing, an aircraft leasing company. SKYW currently carries a Zacks Rank of 2.

SKYW has an impressive earnings surprise track record, having surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat was 17.1%. The Zacks Consensus Estimate for current and next-year earnings has been revised upward over the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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