AerCap Holdings (AER) Trading With Heavy Volume Before Market Open

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.

Trade-Ideas LLC identified AerCap Holdings ( AER) as a pre-market mover with heavy 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 $58.1 million.
  • AER traded 213,368 shares today in the pre-market hours as of 7:37 AM, representing 18.1% of its average daily volume.

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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. AER has a PE ratio of 9. 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 892,200 shares per day over the past 30 days. AerCap has a market cap of $10.3 billion and is part of the services sector and transportation industry. The stock has a beta of 1.70 and a short float of 6.7% with 5.50 days to cover. Shares are up 28.6% year-to-date as of the close of trading on Tuesday.

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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, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • AER's very impressive revenue growth greatly exceeded the industry average of 5.0%. Since the same quarter one year prior, revenues leaped by 393.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AERCAP HOLDINGS NV reported significant earnings per share improvement 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. This trend suggests that the performance of the business is improving. During the past fiscal year, AERCAP HOLDINGS NV increased its bottom line by earning $4.18 versus $2.56 in the prior year. This year, the market expects an improvement in earnings ($5.40 versus $4.18).
  • The gross profit margin for AERCAP HOLDINGS NV is currently very high, coming in at 92.97%. Regardless of AER's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AER's net profit margin of 25.34% significantly outperformed against the industry.
  • 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. When compared to other companies in the Trading Companies & Distributors industry and the overall market, AERCAP HOLDINGS NV's return on equity is below that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 3.69 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.

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