Is Fly Leasing (FLY) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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.
Fly Leasing (FLY) is a stock many investors are watching right now. FLY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 4.95 right now. For comparison, its industry sports an average P/E of 11.83. Over the past year, FLY's Forward P/E has been as high as 5.84 and as low as 3.81, with a median of 4.66.
Investors will also notice that FLY has a PEG ratio of 0.39. 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. FLY's PEG compares to its industry's average PEG of 0.96. Over the past 52 weeks, FLY's PEG has been as high as 0.58 and as low as 0.38, with a median of 0.47.
We should also highlight that FLY has a P/B ratio of 0.81. 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. This stock's P/B looks solid versus its industry's average P/B of 1.23. Over the past 12 months, FLY's P/B has been as high as 0.83 and as low as 0.43, with a median of 0.57.
Finally, we should also recognize that FLY has a P/CF ratio of 2.11. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. FLY's current P/CF looks attractive when compared to its industry's average P/CF of 7.52. Over the past year, FLY's P/CF has been as high as 2.25 and as low as 1.38, with a median of 1.72.
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.
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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.