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Is Aircastle (AYR) a Great Value Stock Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Aircastle (AYR). AYR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8. This compares to its industry's average Forward P/E of 13.27. Over the past year, AYR's Forward P/E has been as high as 11.52 and as low as 7.97, with a median of 9.03.

We also note that AYR holds a PEG ratio of 0.80. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AYR's industry currently sports an average PEG of 1.30. Within the past year, AYR's PEG has been as high as 1.70 and as low as 0.80, with a median of 0.90.

Investors should also recognize that AYR has a P/B ratio of 0.78. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.49. Within the past 52 weeks, AYR's P/B has been as high as 1.04 and as low as 0.77, with a median of 0.85.

Finally, investors should note that AYR has a P/CF ratio of 2.82. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AYR's P/CF compares to its industry's average P/CF of 4.79. Over the past year, AYR's P/CF has been as high as 4.10 and as low as 2.81, with a median of 3.34.

These are only a few of the key metrics included in Aircastle'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, AYR looks like an impressive value stock at the moment.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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