Air Lease (AL) Weak On High Volume

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 $26.3 million.
  • AL has traded 106,493 shares today.
  • AL is trading at 2.46 times the normal volume for the stock at this time of day.
  • AL is trading at a new low 3.02% 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.

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More details on AL:

Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet transport aircraft to airlines in Asia, the Pacific Rim, Latin America, the Middle East, Europe, Africa, and North America. The stock currently has a dividend yield of 0.6%. AL has a PE ratio of 14. 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 1.4 million shares per day over the past 30 days. Air Lease has a market cap of $3.4 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.83 and a short float of 9.7% with 9.71 days to cover. Shares are down 2.1% 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 hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.8%. Since the same quarter one year prior, revenues rose by 18.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for AIR LEASE CORP is currently very high, coming in at 91.73%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.74% significantly outperformed against the industry average.
  • AIR LEASE CORP has improved earnings per share by 13.8% in the most recent quarter compared to 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, AIR LEASE CORP reported lower earnings of $2.34 versus $2.38 in the prior year. This year, the market expects an improvement in earnings ($3.32 versus $2.34).
  • The debt-to-equity ratio is very high at 2.55 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, AIR LEASE CORP'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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