Attractive stocks have exceptional fundamentals. In the case of Air Lease Corporation (NYSE:AL), there’s has a an impressive history of performance and an optimistic future outlook not yet priced into the stock. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Air Lease here.
Good value with reasonable growth potential
AL’s outstanding revenue growth of 55% forecasted for the near future is certainly eye-catching for investors on the hunt for growth, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to ramp up by 66% next year. This indicates that revenue is driven by high-quality cash from AL’s day-to-day business as opposed to one-off income. AL delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. Not only did AL outperformed its past performance, its growth also surpassed the Trade Distributors industry expansion, which generated a 77% earnings growth. This is an notable feat for the company.
AL’s shares are now trading at a price below its true value based on its PE ratio of 4.57x, compared to the industry and wider stock market ratio, making it a relatively cheap stock compared to its peers.
For Air Lease, I’ve put together three fundamental factors you should further research:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Dividend Income vs Capital Gains: Does AL return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from AL as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.