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Copa Holdings (CPA) Gains But Lags Market: What You Should Know

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In the latest trading session, Copa Holdings (CPA - Free Report) closed at $110.45, marking a +0.07% move from the previous day. This move lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 1.26%.

Heading into today, shares of the holding company for Panama's national airline had gained 7.18% over the past month, outpacing the Transportation sector's gain of 2.99% and the S&P 500's gain of 4.31% in that time.

Investors will be hoping for strength from Copa Holdings as it approaches its next earnings release. On that day, Copa Holdings is projected to report earnings of $3.08 per share, which would represent year-over-year growth of 862.5%. Our most recent consensus estimate is calling for quarterly revenue of $784.54 million, up 13.15% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.21 per share and revenue of $3.43 billion. These totals would mark changes of +84.14% and +15.58%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Copa Holdings. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 11.53% higher. Copa Holdings is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note Copa Holdings's current valuation metrics, including its Forward P/E ratio of 7.26. This represents a discount compared to its industry's average Forward P/E of 10.54.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CPA in the coming trading sessions, be sure to utilize Zacks.com.


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