Trade-Ideas: AerCap Holdings (AER) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified AerCap Holdings ( AER) as a new lifetime high 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 $67.5 million.
  • AER has traded 9,524 shares today.
  • AER is trading at a new lifetime high.

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More details on AER:

AerCap Holdings N.V., through its subsidiaries, is engaged in leasing, financing, selling, and managing commercial aircraft and engines primarily in the United States and Russia. AER has a PE ratio of 18.8. Currently there are 5 analysts that rate AerCap Holdings a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for AerCap Holdings has been 723,400 shares per day over the past 30 days. AerCap has a market cap of $10.1 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.42 and a short float of 1.3% with 1.35 days to cover. Shares are up 24.4% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates AerCap Holdings as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:
  • AER's very impressive revenue growth greatly exceeded the industry average of 0.9%. Since the same quarter one year prior, revenues leaped by 243.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 161.45% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The gross profit margin for AERCAP HOLDINGS NV is rather high; currently it is at 62.95%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, AER's net profit margin of 17.14% compares favorably to the industry average.
  • The debt-to-equity ratio is very high at 4.36 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Trading Companies & Distributors industry and the overall market, AERCAP HOLDINGS NV's return on equity is significantly below that of the industry average and is below that of the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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