Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:Heritage Commerce Corp (HTBK) : This bank holding company for Heritage Bank of Commerce has seen the Zacks Consensus Estimate for its current year earnings increasing 6.7% over the last 60 days.Molson Coors Beverage Company (TAP) : This beer and malt beverages company has seen the Zacks Consensus Estimate for its current year earnings increasing 6.4% over the last 60 days.AerSale Corporation (ASLE) : This company that provides aftermark ...

Here are three stocks with buy rank and strong value characteristics for investors to consider today, March 27th: Molson Coors Beverage Company (TAP) : This beer and malt beverages company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.4% over the last 60 days. AerSale has a price-to-earnings ratio (P/E) of 13.00, compared with 36.50 for the industry. The company possesses a Value Score of B. Credit Acceptance Corporation (CACC) : This fina ...

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify stocks with momentum by focusing on key metrics [2] Group 2: AerSale Corporation (ASLE) Analysis - AerSale Corporation currently holds a Momentum Style Score of A and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - ASLE shares have increased by 1.82% over the past week, outperforming the Zacks Aerospace - Defense Equipment industry, which rose by 0.63% [6] - Over the past quarter, ASLE shares have gained 33.6%, while the S&P 500 has decreased by 4.21% during the same period [7] Group 3: Trading Volume and Earnings Outlook - ASLE's average 20-day trading volume is 756,165 shares, which is a bullish indicator when combined with rising stock prices [8] - In the last two months, one earnings estimate for ASLE has increased, raising the consensus estimate from $0.40 to $0.65 [10] - The positive earnings revisions contribute to ASLE's strong performance and support its classification as a 2 (Buy) stock with a Momentum Score of A [12]

Core Insights - Three stocks with strong momentum and buy rank are highlighted for investors: RWE AG, AerSale, and Concentra Group Holdings Parent, Inc. [1] RWE AG - RWE AG operates in the generation, transmission, sale, and trading of electricity, gas, and water in Continental Europe [1] - The company has a Zacks Rank of 1 (Strong Buy) and a 2.2% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - RWE AG's shares increased by 17.8% over the last three months, contrasting with the S&P 500's decline of 5.2% [2] - The company holds a Momentum Score of A [2] AerSale - AerSale provides integrated, diversified aviation aftermarket products and services aimed at helping aircraft owners and operators save on operation, maintenance, and monetization [3] - The company also has a Zacks Rank of 1 and a significant 62.5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - AerSale's shares rose by 36.9% over the last three months, while the S&P 500 lost 5.2% [4] - The company possesses a Momentum Score of A [4] Concentra Group Holdings Parent, Inc. - Concentra Group Holdings is a provider of occupational health services primarily in the United States [5] - The company has a Zacks Rank of 1 and a 3.9% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [5] - Concentra's shares gained 5.2% over the last three months, in line with the S&P 500's loss of 5.2% [5] - The company has a Momentum Score of B [5]

Core Viewpoint - AerSale Corporation (ASLE) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for AerSale is projected at $0.65 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 261.1% [9]. - Over the past three months, the Zacks Consensus Estimate for AerSale has risen by 14.9%, indicating a trend of increasing earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is tracked through EPS estimates from sell-side analysts [2]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting their superior earnings estimate revision features [10][11]. Market Implications - The upgrade to Zacks Rank 1 for AerSale suggests an improvement in the company's underlying business, which is expected to lead to increased buying pressure and a rise in stock price [6][11]. - The correlation between earnings estimate revisions and near-term stock movements underscores the importance of tracking these revisions for investment decisions [7].

Core Insights - The article discusses an active investing approach focused on identifying breakout stocks, emphasizing the importance of support and resistance levels in stock price movements [1][2][3] Group 1: Breakout Stock Selection - Breakout stocks are identified by calculating support (lower bound) and resistance (upper bound) levels, with a focus on stocks nearing a breakout or those that have just surpassed resistance [2][3] - A genuine breakout occurs when the previous resistance level becomes a new support level, which can be validated through long-term price trend analysis [5] Group 2: Screening Criteria - The screening criteria for selecting breakout stocks include: - A percentage price change over four weeks between 10% and 20% [6] - Current price being at least 90% of the 52-week high [6] - A Zacks Rank of 1, indicating strong buy potential [6] - A beta of 2 or less, indicating reasonable volatility compared to the broader market [7] - Current price less than or equal to $20, ensuring affordability [7] Group 3: Featured Stocks - AerSale Corporation (ASLE) is highlighted as a top breakout stock, supplying aircraft and engine parts globally, with an expected earnings growth rate of 261.1% for the current year [7] - Banco Bilbao Vizcaya Argentaria (BBVA) offers banking services across multiple regions, with an expected earnings growth rate of 7.4% for the next year [9] - Deutsche Lufthansa AG (DLAKY) operates in the aviation sector, with an expected earnings growth rate of 34.8% for the next year [10]

Company Performance - AerSale Corporation (ASLE) has gained approximately 29.7% year-to-date, significantly outperforming the Aerospace group, which has seen an average loss of about 0.1% [4] - The Zacks Consensus Estimate for ASLE's full-year earnings has increased by 14.9% over the past 90 days, indicating improved analyst sentiment and earnings outlook [3] - AerSale Corporation holds a Zacks Rank of 1 (Strong Buy), reflecting its strong performance potential [3] Industry Context - AerSale Corporation is part of the Aerospace - Defense Equipment industry, which consists of 26 individual stocks and currently ranks 41 in the Zacks Industry Rank [6] - The average performance of stocks in the Aerospace - Defense Equipment industry has been a gain of 0.5% this year, suggesting that ASLE is outperforming its immediate industry peers [6] - Astronics Corporation (ATRO), another stock in the Aerospace sector, has also shown strong performance with a year-to-date return of 52.1% and a Zacks Rank of 1 [4][5] Sector Overview - The Aerospace group, which includes AerSale Corporation, is currently ranked 2 within the Zacks Sector Rank, indicating a strong position relative to other sectors [2] - The Zacks Sector Rank evaluates 16 different groups based on the average Zacks Rank of individual stocks, highlighting the strength of the Aerospace sector [2]

AerSale Corporation (ASLE) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between t ...

[Part I: Business and Risk Factors](index=6&type=section&id=Part%20I) [Business Overview](index=6&type=section&id=ITEM%201.%20BUSINESS) AerSale provides aftermarket commercial aviation products and services through Asset Management Solutions and TechOps segments, contributing 62% and 38% of 2024 revenue respectively - The company's business is structured into two primary segments: **Asset Management Solutions (AMS)** and **Technical Operations (TechOps)**[26](index=26&type=chunk) Revenue Contribution by Segment (FY 2024 vs. FY 2023) | Segment | 2024 Revenue % | 2023 Revenue % | | :--- | :--- | :--- | | Asset Management Solutions | 62% | 64% | | TechOps | 38% | 36% | [Business Segments and Operations](index=7&type=section&id=Overview%20of%20Business%20and%20Operations) Asset Management Solutions maximizes mid-life flight equipment value, while TechOps provides MRO services and develops proprietary Engineered Solutions like AerSafe® and AerAware™ - Asset Management Solutions monetizes mid-life flight equipment via sales, leases, and disassembly into **USM**, a key feedstock for the business[27](index=27&type=chunk) - The TechOps segment offers nose-to-tail MRO services and develops proprietary **'Engineered Solutions'** such as AerSafe® and the recently FAA-approved AerAware™ for the Boeing B737NG[28](index=28&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [Competition and Competitive Strengths](index=9&type=section&id=Competition%20and%20Competitive%20Strengths) AerSale competes in a fragmented market, differentiating with an integrated 'one-stop' solution, cost-efficient USM sourcing, cross-selling, and rare FAA 'unlimited' repair station ratings - Competitors are numerous and often specialize, including **AAR Corp.**, **GA Telesis**, and **Delta TechOps**[33](index=33&type=chunk)[35](index=35&type=chunk) - A primary competitive advantage is the **integrated business model**, providing a 'one-stop' source for aircraft, engine, and USM support, bundled with MRO solutions[40](index=40&type=chunk) - The company holds legacy FAA **'unlimited' repair station ratings**, enabling fast-track new MRO capabilities through a 'self-certification' process[42](index=42&type=chunk) [Growth Strategies and Customers](index=11&type=section&id=Growth%20Strategies%20and%20Customers) AerSale's growth strategy includes broadening MRO capabilities, expanding government and international presence, introducing new Engineered Solutions, and pursuing strategic acquisitions, serving over 1,000 global customers - Key growth strategies include broadening **MRO capabilities** using its 'unlimited' FAA licenses, expanding presence in the stable government sector, investing in new **'Engineered Solutions'**, expanding geographical footprint, and pursuing strategic acquisitions[43](index=43&type=chunk)[49](index=49&type=chunk) - In FY2024, **non-U.S. customers accounted for 37% of total revenue**, with **73% of top 100 customer revenue** from clients using multiple services[46](index=46&type=chunk)[47](index=47&type=chunk) [Human Capital and Environmental Matters](index=19&type=section&id=Human%20Capital%20and%20Environmental%20Matters) As of February 2025, AerSale employed 636 people, focusing on talent retention, diversity (34% female, 62% minority), and managing environmental liabilities through indemnifications and insurance - As of February 1, 2025, the company employed **636 people**, supplemented by approximately **60 contract workers**[68](index=68&type=chunk) - As of December 31, 2024, the employee base was **34% female** and **62% minority**, with active recruitment from diverse communities[77](index=77&type=chunk) - The company is subject to numerous environmental laws and manages historical contamination risks through **indemnification** and an **environmental impairment liability policy**[78](index=78&type=chunk)[79](index=79&type=chunk) [Risk Factors](index=23&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces risks from cyclical aviation industry, supply chain, geopolitical instability, fluctuating asset values, goodwill impairment, financing dependence, extensive regulation, cybersecurity, and international operations [Business and Industry Risks](index=23&type=section&id=Business%20and%20Industry%20Risks) AerSale's business is exposed to cyclical aviation industry risks, including geopolitical events, supply chain disruptions, fluctuating asset values, labor shortages, and a significant April 2024 warehouse fire - The business is affected by factors impacting the commercial aviation industry, including **geopolitical conflicts** (Russia-Ukraine, Israel-Hamas), economic slowdowns, and reduced flight activity[85](index=85&type=chunk) - In April 2024, a fire destroyed a leased parts warehouse in Roswell, NM; the company filed a **$67.6 million insurance claim** and collected approximately **$34.6 million** against a **$6.0 million cost basis**[121](index=121&type=chunk) - The company is exposed to risks from international operations, as its ERP vendor and most AerAware™ EFVS product components suppliers are based in **Israel**, a region currently in conflict[104](index=104&type=chunk) [Strategic and Financial Risks](index=37&type=section&id=Strategic%20and%20Financial%20Risks) The company's financial stability faces risks from financing dependence, restrictive debt covenants, and potential goodwill impairment, particularly for the Asset Management Solutions unit, which has a small fair value margin - The company is dependent on continued **financing availability**, and existing debt agreements contain **restrictive covenants** that could limit operations[130](index=130&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk) - A significant risk of **goodwill impairment** exists, particularly for the Asset Management Solutions reporting unit with **$13.4 million in goodwill**, whose fair value only slightly exceeded its carrying value at year-end[139](index=139&type=chunk)[239](index=239&type=chunk) [Legal and Regulatory Risks](index=42&type=section&id=Legal%20and%20Regulatory%20Risks) AerSale operates in a highly regulated industry, facing risks from FAA compliance, export controls, product liability claims, and environmental liabilities for facility contamination - The aviation industry is highly regulated by the **FAA** and other international bodies; revocation of licenses or certificates could adversely impact operations[141](index=141&type=chunk)[142](index=142&type=chunk) - The company is subject to U.S. and international **anti-corruption laws** (e.g., FCPA), **export controls**, and **economic sanctions**, requiring significant compliance efforts[146](index=146&type=chunk)[149](index=149&type=chunk) - The business is exposed to **product liability claims** and **environmental liabilities**, which may not be fully covered by insurance or indemnification[155](index=155&type=chunk)[156](index=156&type=chunk) [Cybersecurity](index=52&type=section&id=ITEM%201C.%20CYBERSECURITY) AerSale maintains a comprehensive cybersecurity program based on NIST and CIS frameworks, overseen by the Audit Committee and led by an experienced CIO, with no material incidents reported to date - The company maintains a cybersecurity program based on **NIST** and **CIS frameworks**, overseen by the Audit Committee and managed by an experienced CIO[172](index=172&type=chunk)[174](index=174&type=chunk) - The program includes **security awareness training**, internal and external assessments, **third-party risk management**, and an **incident response plan**[173](index=173&type=chunk) - AerSale has not identified any risks from cybersecurity threats or prior incidents reasonably likely to materially affect the company[173](index=173&type=chunk) [Properties](index=53&type=section&id=ITEM%202.%20PROPERTIES) AerSale's principal office is in Doral, Florida, with major MRO and storage facilities in Goodyear, Roswell, and Millington, offering over 760,000 square feet and capacity for 650 aircraft - The company operates three major on-airport MRO facilities in **Goodyear (AZ)**, **Roswell (NM)**, and **Millington (TN)**[176](index=176&type=chunk) - These facilities provide over **760,000 square feet of hangar space** and long-term storage capacity for up to **650 aircraft**[29](index=29&type=chunk)[176](index=176&type=chunk) - USM parts are primarily distributed from a dedicated warehouse in **Memphis, TN**, and a bulk storage facility in **Roswell, NM**, with over **500,000 square feet of space**[177](index=177&type=chunk) [Part II: Market, Financial Analysis, and Statements](index=55&type=section&id=Part%20II) [Management's Discussion and Analysis (MD&A)](index=57&type=section&id=ITEM%207.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) In FY2024, AerSale's total revenue grew 3.2% to $345.1 million, with gross profit up 12.5% to $103.9 million, driven by Asset Management's improved mix despite TechOps margin pressure, and significantly improved operating cash flow [Results of Operations (FY 2024 vs. FY 2023)](index=61&type=section&id=Results%20of%20Operations) In 2024, total revenue grew 3.2% to $345.1 million, and gross profit rose 12.5% to $103.9 million, with Asset Management's gross profit up 21.9% and TechOps' down 13.2% due to margin compression, resulting in a net income of $5.9 million Consolidated Financial Performance (in thousands) | Metric | FY 2024 | FY 2023 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$345,066** | **$334,503** | **3.2%** | | Asset Management Solutions | $215,467 | $215,167 | 0.1% | | TechOps | $129,599 | $119,336 | 8.6% | | **Total Gross Profit** | **$103,936** | **$92,421** | **12.5%** | | Asset Management Solutions | $82,441 | $67,655 | 21.9% | | TechOps | $21,495 | $24,766 | (13.2)% | | **Net Income (Loss)** | **$5,851** | **($5,563)** | **N/A** | - The decrease in Asset Management aircraft revenue was primarily due to reduced activity in the **B757 product line**, reflecting softer demand in the freighter market[199](index=199&type=chunk) - TechOps gross margin declined from **20.8% in 2023 to 16.6% in 2024**, driven by lower margins on MRO services due to facility expansion projects[205](index=205&type=chunk) [Financial Position, Liquidity and Capital Resources](index=65&type=section&id=Financial%20Position%2C%20Liquidity%20and%20Capital%20Resources) As of December 31, 2024, AerSale had $4.7 million cash, generated $11.2 million from operations (up from $174.2 million used in 2023), used $16.1 million in investing, and maintains strong liquidity with $138.1 million available on its credit facility Key Balance Sheet and Liquidity Metrics (as of Dec 31, 2024) | Metric | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $4.7 | | Revolving Credit Facility Outstanding | $39.2 | | Revolving Credit Facility Availability | $138.1 | - Year-over-year, **cash from operations increased by $185.3 million to $11.2 million provided**, primarily from lower feedstock acquisitions and insurance proceeds; **cash from investing shifted to $16.1 million used**; and **cash from financing decreased to $3.8 million provided**[218](index=218&type=chunk)[219](index=219&type=chunk)[221](index=221&type=chunk) [Debt Obligations and Covenant Compliance](index=67&type=section&id=Debt%20Obligations%20and%20Covenant%20Compliance) AerSale's primary debt is a $180 million revolving credit facility, with $39.2 million outstanding at year-end 2024, and the company was in compliance with all debt covenants - The main credit facility is a **$180 million revolver** maturing in July 2028, with **$39.2 million drawn** and **$138.1 million available** at year-end[222](index=222&type=chunk)[224](index=224&type=chunk) - In 2024, the company paid off the **Synovus Equipment Loan** and entered into a new **$10.0 million CIBC Equipment Loan** to finance capital expenditures[226](index=226&type=chunk)[228](index=228&type=chunk) [Critical Accounting Policies and Estimates](index=68&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management identifies critical accounting policies including revenue recognition, inventory costing, and goodwill valuation, noting a heightened risk of future goodwill impairment for the Asset Management Solutions unit due to its small fair value margin - The cost of **USM inventory** from dismantled aircraft is determined using a ratio based on the estimated sales value of all parts, requiring significant management judgment[236](index=236&type=chunk)[254](index=254&type=chunk) - A significant decline in the company's stock price triggered goodwill impairment testing in 2024, indicating a higher risk of future impairment for the **Asset Management Solutions reporting unit** as its fair value only slightly exceeded its carrying value[238](index=238&type=chunk)[239](index=239&type=chunk) [Financial Statements and Supplementary Data](index=73&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) The 2024 consolidated financial statements, audited by Grant Thornton LLP with an unqualified opinion, show a return to profitability with $5.9 million net income and total assets growing to $604.7 million, with two Critical Audit Matters identified Consolidated Financial Highlights (in thousands) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $4,698 | $5,873 | | Total Inventory | $355,790 | $329,168 | | Total Assets | $604,723 | $553,938 | | **Liabilities & Equity** | | | | Total Liabilities | $149,103 | $108,923 | | Total Stockholders' Equity | $455,620 | $445,015 | Consolidated Statement of Operations Highlights (in thousands, except EPS) | Metric | FY 2024 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | | Total Revenue | $345,066 | $334,503 | $408,544 | | Gross Profit | $103,936 | $92,421 | $151,394 | | Net Income (Loss) | $5,851 | $(5,563) | $43,861 | | Diluted EPS | $0.11 | $(0.15) | $0.83 | - The independent auditor, **Grant Thornton LLP**, identified two Critical Audit Matters: assessment of **USM inventory cost** and assessment of **goodwill impairment** for the AMS and ACT reporting units[253](index=253&type=chunk)[254](index=254&type=chunk)[259](index=259&type=chunk) [Controls and Procedures](index=137&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024, a conclusion affirmed by Grant Thornton LLP's unqualified opinion - Management concluded that **disclosure controls and procedures were effective** as of December 31, 2024[436](index=436&type=chunk) - Management concluded that the company maintained **effective internal control over financial reporting** as of December 31, 2024[440](index=440&type=chunk) - No material changes to internal control over financial reporting occurred during the fourth quarter of 2024[441](index=441&type=chunk) [Part III & IV: Governance, Compensation, and Exhibits](index=142&type=section&id=Part%20III%20%26%20IV) [Corporate Governance and Executive Compensation](index=142&type=section&id=ITEM%2010%2C%2011%2C%2012%2C%2013%2C%2014) Information on corporate governance, executive compensation, and related matters is incorporated by reference from the 2025 proxy statement, with a table detailing equity compensation plan securities - Detailed information for **Items 10, 11, 12, 13, and 14** is incorporated by reference from the forthcoming 2025 proxy statement[454](index=454&type=chunk)[455](index=455&type=chunk)[457](index=457&type=chunk)[458](index=458&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2024) | Plan Category | Securities to be Issued Upon Exercise | Weighted-Average Exercise Price | Securities Remaining Available for Future Issuance | | :--- | :--- | :--- | :--- | | Approved by security holders | 2,026,578 | $7.95 | 1,611,825 | [Exhibits and Financial Statement Schedules](index=144&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists all exhibits filed with the Form 10-K, including governance documents, material contracts, and certifications, with financial statement schedules omitted - A comprehensive list of all exhibits filed with the annual report is provided, including **governance documents**, **credit agreements**, and **executive offer letters**[463](index=463&type=chunk)[464](index=464&type=chunk) - Certifications by the **Principal Executive Officer** and **Principal Financial Officer** pursuant to Sarbanes-Oxley Sections 302 and 906 are included as exhibits[473](index=473&type=chunk)

Core Insights - AerSale (NASDAQ: ASLE) stock has increased by 17% following the release of fourth quarter results that surpassed expectations [2] - The previous price target of $8.17 for AerSale stock has been achieved, aligning with the analyst's expectations [2] - The Aerospace Forum focuses on identifying investment opportunities within the aerospace, defense, and airline sectors, leveraging data analytics for informed analysis [2] Company Performance - AerSale's fourth quarter results exceeded market expectations, contributing to a significant stock price increase [2] - The stock's performance reflects the company's strong position and growth potential within the aerospace industry [2] Analyst Insights - The analyst has a background in aerospace engineering, providing a unique perspective on industry developments and their potential impact on investment strategies [2] - The analysis is data-driven, emphasizing the importance of analytics in understanding market trends and investment opportunities [2]