Copa Holdings, S.A. (CPA - Free Report) is benefiting from continued recovery in air-travel demand. Notably, CPA’s fourth-quarter 2022 revenues benefited from growth across Passenger revenues.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes Copa Holdings an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past six months. Shares of Copa Holdings have gained 30.2% over the past six months, outperforming the 11.1% rise of the industry it belongs to.
Solid Rank & VGM Score: Copa Holdings currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Copa Holdings’ 2023 earnings has moved up 9.8% year over year. For 2024, the company’s earnings are expected to increase 4.8% year over year.
Positive Earnings Surprise History: Copa Holdings has an impressive earnings surprise history. The company delivered an earnings surprise of 33.35% in the last four quarters, on average.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For first-quarter 2023, Copa Holdings’ earnings are expected to register more than 100% growth. For 2023 and 2024, the company’s earnings are expected to grow 30.27% and 7.93% year over year, respectively.
Growth Factors:Copa Holdings’ top line is benefiting from the recovery in air-travel demand. In fourth-quarter 2022, passenger revenues contributed 95.6% to CPA’s top line. Furthermore, the company’s fleet modernization efforts look encouraging.
CPA exited 2022 with a consolidated fleet of 97 aircraft, comprising 67 Boeing 737-800s, 20 Boeing 737 MAX 9s, 9 Boeing 737-700s and 1 Boeing 737-800 freighter. During the fourth quarter of 2022, the carrier took delivery of two Boeing 737 MAX 9 aircraft. In January, CPA further took delivery of one Boeing 737 MAX 9 and anticipates receiving one additional aircraft by the end of the first quarter.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are Alaska Air Group, Inc. (ALK - Free Report) and American Airlines (AAL - Free Report) , both carrying a Zacks Rank #2.
Alaska Air has an expected earnings growth rate of 32.64% for the current year. ALK delivered a trailing four-quarter earnings surprise of 8.98%, on average.
The Zacks Consensus Estimate for ALK’s current-year earnings has improved 7.1% over the past 90 days. Shares of ALK have soared 11.1% over the past six months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 19.3% over the past 90 days. Shares of AAL have gained 19.4% over the past six months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Copa Holdings, S.A. (CPA - Free Report) is benefiting from continued recovery in air-travel demand. Notably, CPA’s fourth-quarter 2022 revenues benefited from growth across Passenger revenues.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes Copa Holdings an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past six months. Shares of Copa Holdings have gained 30.2% over the past six months, outperforming the 11.1% rise of the industry it belongs to.
Solid Rank & VGM Score: Copa Holdings currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Copa Holdings’ 2023 earnings has moved up 9.8% year over year. For 2024, the company’s earnings are expected to increase 4.8% year over year.
Positive Earnings Surprise History: Copa Holdings has an impressive earnings surprise history. The company delivered an earnings surprise of 33.35% in the last four quarters, on average.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For first-quarter 2023, Copa Holdings’ earnings are expected to register more than 100% growth. For 2023 and 2024, the company’s earnings are expected to grow 30.27% and 7.93% year over year, respectively.
Growth Factors:Copa Holdings’ top line is benefiting from the recovery in air-travel demand. In fourth-quarter 2022, passenger revenues contributed 95.6% to CPA’s top line. Furthermore, the company’s fleet modernization efforts look encouraging.
CPA exited 2022 with a consolidated fleet of 97 aircraft, comprising 67 Boeing 737-800s, 20 Boeing 737 MAX 9s, 9 Boeing 737-700s and 1 Boeing 737-800 freighter. During the fourth quarter of 2022, the carrier took delivery of two Boeing 737 MAX 9 aircraft. In January, CPA further took delivery of one Boeing 737 MAX 9 and anticipates receiving one additional aircraft by the end of the first quarter.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are Alaska Air Group, Inc. (ALK - Free Report) and American Airlines (AAL - Free Report) , both carrying a Zacks Rank #2.
Alaska Air has an expected earnings growth rate of 32.64% for the current year. ALK delivered a trailing four-quarter earnings surprise of 8.98%, on average.
The Zacks Consensus Estimate for ALK’s current-year earnings has improved 7.1% over the past 90 days. Shares of ALK have soared 11.1% over the past six months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 19.3% over the past 90 days. Shares of AAL have gained 19.4% over the past six months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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