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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Fly Leasing (FLY). FLY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 4.51 right now. For comparison, its industry sports an average P/E of 10.93. Over the last 12 months, FLY's Forward P/E has been as high as 6.09 and as low as 3.81, with a median of 4.69.
We also note that FLY holds a PEG ratio of 0.39. 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 1.04. Over the last 12 months, FLY's PEG has been as high as 0.61 and as low as 0.38, with a median of 0.55.
Another valuation metric that we should highlight is FLY's P/B ratio of 0.64. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. FLY's current P/B looks attractive when compared to its industry's average P/B of 1.10. Within the past 52 weeks, FLY's P/B has been as high as 0.74 and as low as 0.43, with a median of 0.57.
Finally, our model also underscores that FLY has a P/CF ratio of 1.86. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. FLY's P/CF compares to its industry's average P/CF of 5.94. Within the past 12 months, FLY's P/CF has been as high as 2.48 and as low as 1.38, with a median of 1.79.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fly Leasing is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FLY feels like a great 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.