Trade-Ideas LLC identified

Air Lease

(

AL

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Air Lease as such a stock due to the following factors:

  • AL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.4 million.
  • AL has traded 133,611 shares today.
  • AL is trading at 2.57 times the normal volume for the stock at this time of day.
  • AL is trading at a new low 3.05% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in AL with the Ticky from Trade-Ideas. See the FREE profile for AL NOW at Trade-Ideas

More details on AL:

Air Lease Corporation engages in the purchase and leasing of commercial jet transport aircraft to airlines worldwide. The company also sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies, and airlines. The stock currently has a dividend yield of 0.5%. AL has a PE ratio of 15. Currently there are 9 analysts that rate Air Lease a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Air Lease has been 714,100 shares per day over the past 30 days. Air Lease has a market cap of $3.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.85 and a short float of 5.8% with 4.92 days to cover. Shares are down 6.2% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Air Lease as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 2.8%. Since the same quarter one year prior, revenues rose by 18.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AIR LEASE CORP has improved earnings per share by 20.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AIR LEASE CORP increased its bottom line by earning $2.38 versus $1.80 in the prior year. This year, the market expects an improvement in earnings ($2.75 versus $2.38).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Trading Companies & Distributors industry average. The net income increased by 22.7% when compared to the same quarter one year prior, going from $62.04 million to $76.12 million.
  • The gross profit margin for AIR LEASE CORP is currently very high, coming in at 92.22%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.54% significantly outperformed against the industry average.
  • AL has underperformed the S&P 500 Index, declining 15.73% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.