Is Fly Leasing (FLY) a Great Value Stock Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Fly Leasing (FLY). FLY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 4.50. This compares to its industry's average Forward P/E of 11.43. FLY's Forward P/E has been as high as 79.87 and as low as 4.44, with a median of 5.83, all within the past year.
Investors should also note that FLY holds a PEG ratio of 0.45. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FLY's PEG compares to its industry's average PEG of 1.12. FLY's PEG has been as high as 7.99 and as low as 0.44, with a median of 0.58, all within the past year.
Another valuation metric that we should highlight is FLY's P/B ratio of 0.52. The P/B is a method of comparing a stock's market value to 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 1.29. Within the past 52 weeks, FLY's P/B has been as high as 0.77 and as low as 0.51, with a median of 0.69.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FLY has a P/S ratio of 0.87. This compares to its industry's average P/S of 1.08.
Finally, our model also underscores that FLY has a P/CF ratio of 1.70. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FLY's current P/CF looks attractive when compared to its industry's average P/CF of 4.16. Over the past 52 weeks, FLY's P/CF has been as high as 5.10 and as low as 1.68, with a median of 2.31.
These are just a handful of the figures considered in Fly Leasing's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FLY is an impressive value stock right now.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.