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Is Fly Leasing (FLY) a Great Value Stock Right Now?

Zacks Equity Research

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice 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 a P/E ratio of 4.72, which compares to its industry's average of 11.41. FLY's Forward P/E has been as high as 6.09 and as low as 3.81, with a median of 4.67, all within the past year.

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 1.01. Within the past year, FLY's PEG has been as high as 0.61 and as low as 0.38, with a median of 0.54.

We should also highlight that FLY has a P/B ratio of 0.67. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.16. 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, investors should note that FLY has a P/CF ratio of 1.93. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.23. Within the past 12 months, FLY's P/CF has been as high as 2.47 and as low as 1.38, with a median of 1.79.

These are only a few of the key metrics included in Fly Leasing's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FLY looks like an impressive value stock at the moment.

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