Why Air Lease Is Ready to Fly

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, jet-leasing company Air Lease has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Air Lease and see what CAPS investors are saying about the stock right now.

Air Leasefacts

Headquarters (Founded)

Los Angeles (2010)

Market Cap

$2.3 billion

Industry

Rental and leasing services

Trailing-12-Month Revenue

$573.8 million

Management

Founder/Chairman/CEO Steven Udvar-Hazy
President/COO John Plueger

Trailing-12-Month Return on Equity

5.3%

Cash/Debt

$439.7 million / $4.3 billion

Competitors

Aircastle
GE Capital Aviation Services
International Lease Finance


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 42 members who have rated Air Lease believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, All-Star TMFBlacknGold, succinctly summed up the Air Lease bull case for our community:

Management is tremendous. In fact, there is probably no one investors would rather have at the helm of an air leasing company than Steven Udvar-Hazy (see article). He practically built the industry.

Fuel efficient aircraft will be in high demand as airlines strive to cut costs, emissions, and upgrade/replace older aircraft in their fleet. In emerging markets -- where Air Lease has over 50% of its fleet -- airlines have less power at the bargaining table because there is less access to capital, so companies like Air Lease can wrestle out more favorable terms for now.

I'll write more about Air Lease in the future. I would like to learn more about the company's debt and dive deeper into the drawbacks of an investment. Nonetheless, I believe this is a great hidden growth opportunity.

If you want to retire rich, you need to put together the best portfolio you can. Of course, despite its five-star rating, Air Lease may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Air Lease Is Ready to Fly originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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