Air Lease (AL) Soars 9%: Is Further Upside Left in the Stock?

Air Lease (AL) shares rallied 9% in the last trading session to close at $33.02. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 18.3% loss over the past four weeks.

The stock surged primarily on optimism surrounding healthy lease demand as economic recovery continues. With easing coronavirus-led restrictions, air-travel demand is steadily improving, which in turn supports increased lease demand for passenger aircraft.

This company that leases planes to airlines is expected to post quarterly earnings of $1.05 per share in its upcoming report, which represents a year-over-year change of +40%. Revenues are expected to be $576.09 million, up 17.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Air Lease, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Air Lease is a member of the Zacks Transportation - Equipment and Leasing industry. One other stock in the same industry, Ryder (R), finished the last trading session 1.1% higher at $71.14. R has returned -10.4% over the past month.

For Ryder , the consensus EPS estimate for the upcoming report has changed +9.6% over the past month to $4.10. This represents a change of +70.8% from what the company reported a year ago. Ryder currently has a Zacks Rank of #2 (Buy).

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