Trade-Ideas LLC identified Air Lease ( AL) as a strong 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 $48.8 million.
  • AL has traded 91,217 shares today.
  • AL is trading at 2.22 times the normal volume for the stock at this time of day.
  • AL is trading at a new high 3.04% 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 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 0.8%. AL has a PE ratio of 11. Currently there are 9 analysts that rate Air Lease a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Air Lease has been 1.1 million shares per day over the past 30 days. Air Lease has a market cap of $2.6 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.69 and a short float of 7.4% with 3.22 days to cover. Shares are down 26.4% year-to-date as of the close of trading on Monday.

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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 2.2%. Since the same quarter one year prior, revenues rose by 20.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AIR LEASE CORP has improved earnings per share by 22.4% 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 ($2.74 versus $2.38).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Trading Companies & Distributors industry. The net income increased by 23.4% when compared to the same quarter one year prior, going from $62.43 million to $77.04 million.
  • The gross profit margin for AIR LEASE CORP is currently very high, coming in at 92.12%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.32% significantly outperformed against the industry average.
  • AL's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 27.83%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Looking ahead, the stock's sharp decline over the past year may have been what was needed in order to bring its value into alignment with its fundamentals and others in its industry.

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