Trade-Ideas LLC identified

Aircastle

(

AYR

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

  • AYR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.3 million.
  • AYR has traded 97,915 shares today.
  • AYR is trading at 4.15 times the normal volume for the stock at this time of day.
  • AYR is trading at a new high 6.07% 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 AYR:

Aircastle Limited acquires, leases, and sells commercial jet aircraft to airlines worldwide. The company also makes investments in various aviation assets, such as debt investments secured by commercial jet aircraft. The stock currently has a dividend yield of 6.2%. AYR has a PE ratio of 9. Currently there are 4 analysts that rate Aircastle a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Aircastle has been 554,200 shares per day over the past 30 days. Aircastle has a market cap of $1.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.90 and a short float of 6.4% with 6.23 days to cover. Shares are down 25.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Aircastle as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 4.1%. Since the same quarter one year prior, revenues rose by 16.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has slightly increased to $158.86 million or 4.53% when compared to the same quarter last year. In addition, AIRCASTLE LTD has also modestly surpassed the industry average cash flow growth rate of -2.15%.
  • The gross profit margin for AIRCASTLE LTD is currently very high, coming in at 91.87%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -6.87% is in-line with the industry average.
  • AIRCASTLE LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, AIRCASTLE LTD increased its bottom line by earning $1.25 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($1.57 versus $1.25).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Trading Companies & Distributors industry and the overall market, AIRCASTLE LTD's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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