AerCap Holdings (AER) Flagged As Strong On High Volume
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified AerCap Holdings as such a stock due to the following factors:
- AER has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $103.4 million.
- AER has traded 119,031 shares today.
- AER is trading at 2.07 times the normal volume for the stock at this time of day.
- AER is trading at a new high 4.03% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on AER:
AerCap Holdings N.V., an independent aircraft leasing company, engages in the leasing, financing, sale, and management of commercial aircraft and engines in China, the Netherlands, the United States, and internationally. AER has a PE ratio of 6. Currently there are 7 analysts that rate AerCap Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for AerCap Holdings has been 2.7 million shares per day over the past 30 days. AerCap has a market cap of $6.4 billion and is part of the services sector and transportation industry. The stock has a beta of 2.17 and a short float of 7.8% with 4.57 days to cover. Shares are down 23.5% year-to-date as of the close of trading on Thursday.
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Analysis:
rates AerCap Holdings as a
. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and disappointing return on equity.
Highlights from the ratings report include:
- Net operating cash flow has increased to $838.77 million or 11.78% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -0.71%.
- AERCAP HOLDINGS NV's earnings per share declined by 22.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AERCAP HOLDINGS NV increased its bottom line by earning $5.72 versus $4.16 in the prior year. This year, the market expects an improvement in earnings ($6.00 versus $5.72).
- The debt-to-equity ratio is very high at 3.55 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Trading Companies & Distributors industry average. The net income has significantly decreased by 28.4% when compared to the same quarter one year ago, falling from $311.50 million to $223.08 million.
- You can view the full AerCap Holdings Ratings Report.
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