We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Investors Should Retain Air Lease (AL) Stock Now
Read MoreHide Full Article
Air Lease Corporation (AL - Free Report) performed well in the past year and has the potential to sustain the momentum in the future.
Let’s look at the factors why investors should retain this stock.
Factors Favoring Air Lease
Air Lease's top line is benefiting from the continuous growth in its fleet and an increase in sales activity. In the first quarter of 2024, AL's top line improved 4.27% year over year. As of Mar 31, 2024, Air Lease’s fleet included 472 owned aircraft and 73 managed aircraft, and it had commitments to purchase 320 aircraft from Boeing and Airbus for delivery through 2028.
Air Lease has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark in the remaining quarter), delivering an average surprise of 15.63%.
Consistent shareholder-friendly moves instill investor confidence and positively impact the company's bottom line. Shares of Air Lease have gained 19.1% in the past six months, outperforming the 16.1% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Key Risks
Rising operating expenses due to higher interest expenses and depreciation of flight equipment costs pose a threat to the company's bottom line. In first-quarter 2024, operating expenses rose 10.5% year over year to $528 million.
Air Lease’s liquidity position remains a concern. Cash and cash equivalent of $554.37 million at the first quarter of 2024-end was lower than the $19.5 billion of debt financing and net of discount and issuance costs. This implies that the company does not have enough cash to meet its debt burden.
Air Lease’s return-on-equity (ROE) is pegged at 9.1%, below the industry’s level of 11.4%. Lower ROE indicates less efficiency in utilizing the equity capital.
SKYW flaunts a VGM Score of A and has a market capitalization of $3.28 billion. The Zacks Consensus Estimate for SKYW’s 2024 earnings per share (EPS) has moved up 6.9% in the past 90 days. Shares of SKYW have surged 58.5% year to date.
SKYW’s expected growth rate for 2024 is more than 100%. SKYW has a trailing four-quarter earnings surprise of 128.09%, on average.
UAL currently flaunts a VGM Score of A. The Zacks Consensus Estimate for UAL 2024 EPS has moved up 2.2% in the past 90 days. UAL has a trailing four-quarter earnings surprise of 32.34%, on average.
Shares of UAL have rallied 13.5% year to date.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why Investors Should Retain Air Lease (AL) Stock Now
Air Lease Corporation (AL - Free Report) performed well in the past year and has the potential to sustain the momentum in the future.
Let’s look at the factors why investors should retain this stock.
Factors Favoring Air Lease
Air Lease's top line is benefiting from the continuous growth in its fleet and an increase in sales activity. In the first quarter of 2024, AL's top line improved 4.27% year over year. As of Mar 31, 2024, Air Lease’s fleet included 472 owned aircraft and 73 managed aircraft, and it had commitments to purchase 320 aircraft from Boeing and Airbus for delivery through 2028.
Air Lease has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark in the remaining quarter), delivering an average surprise of 15.63%.
Consistent shareholder-friendly moves instill investor confidence and positively impact the company's bottom line. Shares of Air Lease have gained 19.1% in the past six months, outperforming the 16.1% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Key Risks
Rising operating expenses due to higher interest expenses and depreciation of flight equipment costs pose a threat to the company's bottom line. In first-quarter 2024, operating expenses rose 10.5% year over year to $528 million.
Air Lease’s liquidity position remains a concern. Cash and cash equivalent of $554.37 million at the first quarter of 2024-end was lower than the $19.5 billion of debt financing and net of discount and issuance costs. This implies that the company does not have enough cash to meet its debt burden.
Air Lease’s return-on-equity (ROE) is pegged at 9.1%, below the industry’s level of 11.4%. Lower ROE indicates less efficiency in utilizing the equity capital.
Zacks Rank and Stocks to Consider
AL currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks for investors’ consideration in the Zacks Transportation sector include SkyWest, Inc. (SKYW - Free Report) and United Airlines Holdings, Inc. (UAL - Free Report) . Each stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SKYW flaunts a VGM Score of A and has a market capitalization of $3.28 billion. The Zacks Consensus Estimate for SKYW’s 2024 earnings per share (EPS) has moved up 6.9% in the past 90 days. Shares of SKYW have surged 58.5% year to date.
SKYW’s expected growth rate for 2024 is more than 100%. SKYW has a trailing four-quarter earnings surprise of 128.09%, on average.
UAL currently flaunts a VGM Score of A. The Zacks Consensus Estimate for UAL 2024 EPS has moved up 2.2% in the past 90 days. UAL has a trailing four-quarter earnings surprise of 32.34%, on average.
Shares of UAL have rallied 13.5% year to date.