7 Undervalued European Stocks To Invest In Now

2. AerCap (NYSE:AER) 

Number of Hedge Fund Investors: 64

Forward P/E Ratio as of September 26: 8.68

AerCap (NYSE:AER) is one of the world’s largest aircraft leasing companies. The company provides aircraft leasing and aviation finance services to airlines worldwide. AerCap’s (NYSE:AER) fleet includes over 1,300 aircraft. The company is focusing on expanding its global presence and modernizing its fleet to include more fuel-efficient models.

On August 1, AerCap (NYSE:AER) announced the delivery of the first three Airbus A321neo aircraft to AirAsia Group, a low-cost airline headquartered near Malaysia. The aircraft are part of a 15-unit deal, with the remaining 12 units scheduled for delivery in 2024 and 2025. With the delivery of the aircraft, AerCap (NYSE:AER) will generate revenue through long-term lease agreements with AirAsia, which will provide a stable source of income. The deal strengthens AerCap’s (NYSE:AER) presence in the Asia-Pacific market and may lead to future growth opportunities, such as additional aircraft deliveries or other business collaborations.

AerCap (NYSE:AER) is trading 8.68 times its earnings, which is a 56.88% discount compared to the sector median of 20.13. The company’s earnings are expected to grow by 4.73% this year. The stock was held by 64 hedge funds at the end of the second quarter with stakes worth $4 billion. As of June 30, Eagle Capital Management is the largest shareholder in the company, with a stake worth $1.12 billion. Analysts hold a consensus Buy rating on the stock, and the average price target of $106.88 implies an upside of 11.43%.