Aar Corp (AIR)

Price: $22.26

Industry: Aerospace-Defense
Chaikin Power Gauge Report | Generated: Wed Feb 29 11:52 EST 2012 Power Gauge Rating

AIR - Very Bullish

The Chaikin Power Gauge Rating for AIR is very bullish due to very attractive financial metrics, strong earnings performance and positive expert opinions. The rating also reflects very bearish price/volume activity. AIR's financial metrics are excellent due to a low price to book value and low price to sales ratio.
TM

News Sentiment Rating

Bullish
AIR Aar Corp February 23, 2012

Chaikin Sentiment Gauge for AIR is bullish. There is currently a significant positive sentiment within news stories concerning AIR.

TM

News Sentiment :Positive

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics

Financial Metrics Rating

LT Debt/Equity Ratio

Very Bullish
AIR's financial metrics are excellent. The company may be undervalued and has high revenue per share. The rank is based on a low price to book value, low price to sales ratio and relatively high cash flow.

Price to Book Value

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Ratio Current Ratio LT Debt/Equity TTM 2.55 0.39

Valuation
Ratio Price/Book Price/Sales TTM 1.04 0.50

Returns
Ratio Return on Invest Return on Equity TTM 6.3% 9.1%

Earnings Performance

Earnings Performance Rating

Earnings Growth

Bullish
AIR's earnings performance has been strong. The company experienced superior earnings growth in the past 12 months and is priced relatively low compared to next year's projected EPS. The rank is based on worse than expected earnings in recent quarters, an upward trend in earnings this year, a relatively low projected P/E ratio and consistent earnings over the past 5 years.

Earnings Surprise

Earnings Trend

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

05/07 Revenue(M) Rev % Growth EPS EPS % Growth 1,061.17 18.26% $1.61 53.33% 05/08 1,384.92 30.51% $2.02 25.47% 05/09 1,423.98 2.82% $2.07 2.48% 05/10 1,352.15 -5.04% $1.17 -43.48% 05/11 1,775.78 31.33% $1.76 50.43%

EPS Estimates
Factor Quarterly EPS Yearly EPS Factor 3-5 year EPS Actual EPS Prev $0.47 $1.76 Actual EPS Growth 15.58% EST EPS Current $0.49 $1.92 Est EPS Growth 22.00% Change +0.02 +0.16 Change +6.42

EPS Surprise
Estimate Latest Qtr 1 Qtr Ago 2 Qtr Ago 3 Qtr Ago $0.46 $0.43 $0.46 $0.42 Actual $0.45 $0.41 $0.54 $0.45 Difference $-0.01 $-0.02 $0.08 $0.03 % Difference -2.17 -4.65 17.39 7.14

EPS Quarterly Results

FY 05/10 05/11 05/12 Qtr 1 $0.27 $0.36 $0.41 Qtr 2 $0.35 $0.44 $0.44 Qtr 3 $0.26 $0.47 Qtr 4 $0.29 $0.54 Total $1.17 $1.81 -

Fiscal Year End Month is May.

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Price Trend & Expert Opinions

Price/Volume Activity

Price/Volume Activity Rating

Relative Strength vs Market

Very Bearish
Price and volume activity for AIR is very bearish. AIR is trading on lower volume than its 90 day average volume and has underperformed the S&P 500 over 26 weeks. The rank for AIR is based on its relative weakness versus the market and a decreasing volume trend.

Chaikin Money Flow

Price Trend

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether AIR is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity
Factor 52 Week High 52 Week Low % Change YTD Rel S&P 500 Value 31.42 15.17 9.33%

Price Activity
Factor % Change Price - 4 Weeks % Change Price - 24 Weeks % Change Price - 4 Wks Rel to S&P % Change Price - 24 Wks Rel to S&P Value 5.00% 2.58% 0.43% -12.32%

Volume Activity
Factor Average Volume 20 Days Average Volume 90 Days Chaikin Money Flow Persistency Value 174,182 266,488 63%

Expert Opinions

Expert Opinions

Earnings Estimate Revisions

Bullish
Expert opinions about AIR are positive. Analysts's opinions on AIR have been more positive recently and AIR has been outperforming the Aerospace-Defense industry over the past 13 weeks. The rank for AIR is based on analysts revising earnings estimates upward, a high short interest ratio, insiders not purchasing significant amounts of stock, optimistic analyst opinions and price strength of the stock versus the Aerospace-Defense industry group.

Short Interest

Insider Activity

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions

Current Current Qtr Next Qtr 0.49 0.59 Current Current FY 1.92 7 Days Ago % Change 0.49 0.59 0.00% 0.00%

Analyst Recommendations
Factor Mean this Week Mean Last Week Change Mean 5 Weeks Ago Value Strong Buy Strong Buy 0.00 Strong Buy

EPS Estimates Revision Summary

Last Week Up Curr Qtr Curr Yr Next Qtr 0 0 0 0 Down 0 0 0 0 Last 4 Weeks Up 0 0 0 0 Down 0 0 0 0

30 Days Ago % Change 1.93 -0.01

Next Yr

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The Company & Its Competitors

AIR's Competitors in Aerospace-Defense

Company AIR ATK SPR TGI COL GR Power Gauge Historic EPS growth 15.58% 8.66% 9.01% 36.53% 4.68% 6.80% Projected EPS growth 22.00% 10.25% 8.20% 4.15% 15.46% Profit Margin 3.90% 5.91% 3.96% 6.71% 12.76% 10.04% PEG 0.53 1.05 1.65 3.17 1.18 PE 12.03 7.01 16.07 14.60 15.33 19.55 Revenue(M) 1,776 4,842 4,864 2,905 4,806 8,075

News Headlines for AIR Teleflex posts higher 4Q profit, mixed outlook Feb 23, 2012 AAR CORP. Completes the Acquisition of Telair International and Nordisk Aviation Dec 2, 2011 AAR CORP. Responds to American Airlines Bankruptcy - Nov 29, 2011 AAR Updates Pending Telair/Nordisk Acquisition - Nov 4, 2011 AAR CORP. to Acquire Telair International and Nordisk Aviation - Oct 21, 2011

Company Details Aar Corp 1100 N WOOD DALE RD WOOD DALE, IL 60191 USA Phone: 6302272000 Fax: 630-227-2039 Website: http://http://www.aarcorp.com Full Time Employees: 6,100 Sector: Aerospace

Company Profile AAR Corp. is a worldwide leader in supplying aftermarket products and services to the global aerospace/aviation industry. It provides aircraft, engines and engine parts; airframe and accessories products; overhaul, repair and maintenance services and company-manufactured products to customers in all segments of this industry, including the world's largest commercial airlines and air cargo operators, original equipment manufacturers, domestic and foreign military and government agencies, aircraft leasing companies and maintenance service providers.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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