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Is Fly Leasing (FLY) Stock Undervalued Right Now?

Zacks Equity Research

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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

One stock to keep an eye on is Fly Leasing (FLY). FLY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 4.77, which compares to its industry's average of 11.10. 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 4.66.

Investors should also note that FLY holds a PEG ratio of 0.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FLY's PEG compares to its industry's average PEG of 0.98. FLY's PEG has been as high as 0.61 and as low as 0.38, with a median of 0.53, all within the past year.

Another notable valuation metric for FLY is its P/B ratio of 0.67. 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 1.13. 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 will want to recognize that FLY has a P/CF ratio of 1.94. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.06. Over the past 52 weeks, FLY's P/CF has been as high as 2.34 and as low as 1.38, with a median of 1.79.

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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