Should Value Investors Buy Fly Leasing (FLY) Stock?

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice 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 has a Forward P/E ratio of 4.68. This compares to its industry's average Forward P/E of 11.28. FLY's Forward P/E has been as high as 6.31 and as low as 3.81, with a median of 5.24, all within the past year.

FLY is also sporting a PEG ratio of 0.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FLY's PEG compares to its industry's average PEG of 1.13. Within the past year, FLY's PEG has been as high as 0.63 and as low as 0.38, with a median of 0.56.

We should also highlight that FLY has a P/B ratio of 0.59. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.48. Over the past year, FLY's P/B has been as high as 0.77 and as low as 0.43, with a median of 0.59.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FLY has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.03.

Finally, investors will want to recognize that FLY has a P/CF ratio of 1.88. 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. FLY's current P/CF looks attractive when compared to its industry's average P/CF of 5.71. FLY's P/CF has been as high as 2.61 and as low as 1.38, with a median of 1.90, all within the past year.

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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