AerCap Holdings (NYSE:AER) is in focus after announcing the delivery of its tenth Boeing 787 aircraft on lease to Aeroméxico, marking its 100th 787 handover from its direct Boeing orderbook.

The Aeroméxico 787 milestone comes as AerCap Holdings trades at US$152.45, with a 1 day share price return of 2.19% and a 1 year total shareholder return of 36.19%, while the 3 year total shareholder return of 155.22% points to stronger longer term momentum.

If this kind of aviation growth story has your attention, it could be a good moment to broaden your search with 37 robotics and automation stocks

AerCap Holdings has momentum after the Aeroméxico 787 milestone and a strong multi year shareholder return. The next step is clear. Does the current price already reflect that progress, or are you still being paid to wait?

Most Popular Narrative: 14.8% Undervalued

The most followed narrative for AerCap Holdings puts fair value at $178.90 per share against the last close of $152.45. That gap rests on a detailed set of earnings and valuation expectations.

Analysts are assuming AerCap Holdings's revenue will decrease by 2.6% annually over the next 3 years. Analysts assume that profit margins will shrink from 37.9% today to 29.2% in 3 years time.

Want to see how AerCap gets to a higher fair value even with lower revenue and margins? The narrative leans on specific earnings paths and a reset profit multiple.

Result: Fair Value of $178.90 (UNDERVALUED)

However, AerCap Holdings investors still need to watch for a potential aircraft oversupply and higher leverage, which could pressure lease rates and future profitability assumptions.

Next Steps

The mix of potential rewards and risks around AerCap Holdings will not mean the same thing to every investor, so move quickly and test the assumptions that matter most to you, then weigh both sides by reviewing the 3 key rewards and 3 important warning signs

Looking for more AerCap Holdings sized ideas?

Do not stop with AerCap Holdings. Use the Simply Wall Street Screener to quickly surface fresh stock ideas that match the kind of opportunities you care about most.

• Target dependable compounding by scanning companies with consistent payouts and income potential through the 10 dividend fortresses
• Hunt for quality at a reasonable price by checking stocks that combine strong fundamentals with room for valuation catch up using the 52 high quality undervalued stocks
• Prioritise capital protection first by focusing on businesses with sturdier financial profiles using the 80 resilient stocks with low risk scores

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.