Air Lease Gains 16% in a Month: What Should Investors Do Now?

Zacks11-26 23:59

Shares of Air Lease Corporation (AL) have had a good time on the bourses of late, improving in double-digits over the past 30 days. The encouraging price performance resulted in AL outperforming its ...

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The encouraging price performance resulted in AL outperforming its ...</p>\n\n<a href=\"https://finance.yahoo.com/news/air-lease-gains-16-month-155900890.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Air Lease Gains 16% in a Month: What Should Investors Do Now?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAir Lease Gains 16% in a Month: What Should Investors Do Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-26 23:59 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/air-lease-gains-16-month-155900890.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Shares of Air Lease Corporation (AL) have had a good time on the bourses of late, improving in double-digits over the past 30 days. The encouraging price performance resulted in AL outperforming its ...</p>\n\n<a href=\"https://finance.yahoo.com/news/air-lease-gains-16-month-155900890.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"WAB","symbol_name":"美国西屋制动","start_time":0,"source_url":"https://finance.yahoo.com/news/air-lease-gains-16-month-155900890.html","article_id":"2486841448","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/ouChDyDSVbiCPe0mniT_ig--~B/aD00MTI7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/ff1646c3e13adb6c050bce40dc6d4849"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2486841448","pubTimestamp":1732636740,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Shares of Air Lease Corporation  have had a good time on the bourses of late, improving in double-digits over the past 30 days. The encouraging price performance resulted in AL outperforming itsindustryin the said time frame. Moreover, AL’s price performance compares favorably with other industry players like Wabtec Corporation  and The Greenbrier Companies, Inc.  in the same time frame.Given the recent rally, the question that naturally arises is whether AL stock can sustain its bullish price performance or if investors should book profits now. Before that, let's delve deep to unearth the reasons behind this northward price movement.Fleet Growth and Increase in Sales Activity: A Major Tailwind. Air Lease's top line is benefiting from strength across both segments. Revenues from the rental of flight equipment are coming from growth inAL’s fleet. The net book value of flight equipment increased to $27.9 billion at the third quarter of 2024-end from $25.6 billion at the prior-year quarte","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"WAB":"美国西屋制动","LU1267930813.SGD":"FRANKLIN TEMPLETON SHARIAH GLOBAL EQUITY \"AS\" (SGD) ACC","AL":"航空租赁公司","BK4585":"ETF&股票定投概念","LU0792757196.USD":"TEMPLETON SHARIAH GLOBAL EQUITY FUND \"A\" (USD) ACC","GBX":"格林布赖尔","IE00B19Z6F94.USD":"Legg Mason Royce - US Smaller Companies A Acc USD","BK4211":"区域性银行","BK4149":"建筑机械与重型卡车","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","LU0889566641.SGD":"FTSF - Templeton Shariah Global Equity A Acc SGD","BK4588":"碎股","LU1983260115.SGD":"Janus Henderson Horizon Global Sustainable Equity A2 SGD-H","BK4572":"航空租赁","LU0154236417.USD":"BGF US FLEXIBLE EQUITY \"A2\" ACC","LU2491049909.HKD":"WELLINGTON SUSTAINABLE OUTCOMES \"A\" (HKD) ACC","IE0034390439.USD":"FTGF ROYCE US SMALLER COMPANIES \"A\" (USD) D","LU2491050071.SGD":"WELLINGTON SUSTAINABLE OUTCOMES \"A\" (SGDHDG) ACC","LU2491050154.USD":"WELLINGTON SUSTAINABLE OUTCOMES \"A\" (USD) ACC","LU2125909759.SGD":"Natixis Thematics Safety H-R/A SGD","ISBC":"投资者银行","LU2125909916.SGD":"Natixis Thematics Safety R/A SGD","LU1923622291.USD":"Natixis Thematics Safety R/A USD","BK4104":"贸易公司与经销商"},"translate_title":"航空租赁一个月内上涨16%：投资者现在应该做什么？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WAB":1,"GBX":1,"ISBC":1,"AL":1},"content_text":"Shares of Air Lease Corporation (AL) have had a good time on the bourses of late, improving in double-digits over the past 30 days. The encouraging price performance resulted in AL outperforming its industryin the said time frame. Moreover, AL’s price performance compares favorably with other industry players like Wabtec Corporation (WAB) and The Greenbrier Companies, Inc. (GBX) in the same time frame.\nOne-Month Price Comparison\n Image Source: Zacks Investment Research\nGiven the recent rally, the question that naturally arises is whether AL stock can sustain its bullish price performance or if investors should book profits now. Before that, let's delve deep to unearth the reasons behind this northward price movement.\nFleet Growth and Increase in Sales Activity: A Major Tailwind\nAir Lease's top line is benefiting from strength across both segments. Revenues from the rental of flight equipment are coming from growth in AL’s fleet. The net book value of flight equipment increased to $27.9 billion at the third quarter of 2024-end from $25.6 billion at the prior-year quarter end.\nAs of Sept. 30, 2024, Air Lease’s fleet included 485 owned aircraft and 64 managed aircraft and had commitments to purchase 287 aircraft from Boeing and Airbus for delivery through 2029. Total aircraft investments in the third quarter were $1.9 billion. During the third quarter, the company took delivery of 20 jets from its order book. This represented $1.9 billion in aircraft investments.\nRevenues from aircraft sales, trading activity and other sources benefit from an increase in gains from aircraft sales. During the first nine months of 2024, AL witnessed $104.2 million in profits from the sale of 25 aircraft and $14.5 million from three sales-type leases.\nFactors Weighing on AL Stock\nAir Lease is currently facing multiple headwinds like higher interest expenses, a rise in operating expenses and a debt-laden balance sheet. Let’s discuss them in detail.\nHigher interest expenses due to an increase in the composite cost of funds and overall outstanding debt balance are hurting Air Lease’s bottom line. AL anticipates its interest expenses to continue to increase as its average debt balance outstanding increases with the growth of its fleet.\nRising operating expenses(due to higher selling, general and administrative expenses; interest expenses and depreciation of flight equipment costs) pose a threat to the company's bottom line. During 2023, operating expenses rose 18.6% to $1.99 billion. In the first nine months of 2024, operating expenses rose 9.8% year over year to $1.63 billion.\nAir Lease’s liquidity position is a concern. Cash and cash equivalents of $460.78 million at the end of the third quarter of 2024 were lower than the $20.16 billion of debt financing and net of discount and issuance costs. This implies that the company does not have enough cash to meet its debt burden.\nAL’s high debt levels are concerning. Long-term debt increased to $20.1 billion at third-quarter 2024-end from $18.6 billion in the year-ago quarter.\nLong-Term Debt to Capitalization\n Image Source: Zacks Investment Research\nGiven this headwind surrounding the stock, earnings estimates have been southbound, as shown below.\n Image Source: Zacks Investment Research\nTo Conclude\nIt is understood that continuous growth in the company’s fleet and increase in sales activity is driving Air Lease’s top line. However, given the headwinds mentioned in the write-up, we do not advise buying this Zacks Rank #3 (Hold) stock at present.\nInstead, investors should monitor the company’s developments closely for a more appropriate entry point. For those who already own the stock, it will be prudent to stay invested. The stock’s Zacks Rank #3 (Hold) supports our thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. \nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nAir Lease Corporation (AL) : Free Stock Analysis Report\nGreenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report\nWestinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2486841448"}