Gliding Higher With AerCap Holdings
As an airplane leasing company, most investors probably envision the stock of AerCap Holdings (NYSE: AER ) trading inline with the airline industry. In fact though, it typically trades more like the financials so one should not be surprised that it currently trades below book value.
The company is one of the largest airplane-leasing firms. Currently, only Air Lease Corporation (NYSE: AL ) trades with a larger market cap due its extremely fast growth from start up to the current level and a well respected management team that moved over from ILFC, a subsidiary of AIG. As AerCap finally trades closer to book value, investors face the interesting dilemma of whether this stock should trade closer to historical values of multiples of book value or if a new normal exists.
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Disclosure: Long AER. Please review the disclaimer page for more details.