Is Fly Leasing (FLY) Stock Undervalued Right Now?

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, 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.

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 to watch right now is Fly Leasing (FLY). FLY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.79, which compares to its industry's average of 11.14. FLY's Forward P/E has been as high as 5.84 and as low as 3.81, with a median of 4.66, all within the past year.

Investors will also notice that FLY has 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 0.91. Within the past year, FLY's PEG has been as high as 0.54 and as low as 0.38, with a median of 0.45.

We should also highlight that FLY has a P/B ratio of 0.80. 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 1.17. Over the past year, FLY's P/B has been as high as 0.90 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 1.95. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.11. Over the past 52 weeks, FLY's P/CF has been as high as 2.17 and as low as 1.38, with a median of 1.72.

Value investors will likely look at more than just these metrics, but the above data helps show that Fly Leasing is likely undervalued currently. And when considering the strength of its earnings outlook, FLY sticks out at as one of the market's strongest value stocks.

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