Back to top

Image: Bigstock

Copa Holdings (CPA) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Copa Holdings (CPA - Free Report) closed the most recent trading day at $88.31, moving -2% from the previous trading session. This change lagged the S&P 500's daily loss of 0.23%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.09%.

Coming into today, shares of the holding company for Panama's national airline had lost 8.15% in the past month. In that same time, the Transportation sector lost 3.44%, while the S&P 500 lost 1.43%.

Copa Holdings will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.52, up 20.96% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $863.91 million, up 6.73% from the year-ago period.

CPA's full-year Zacks Consensus Estimates are calling for earnings of $14.52 per share and revenue of $3.42 billion. These results would represent year-over-year changes of +75.79% and +15.26%, respectively.

It is also important to note the recent changes to analyst estimates for Copa Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.1% higher within the past month. Copa Holdings is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Copa Holdings has a Forward P/E ratio of 6.21 right now. This represents a discount compared to its industry's average Forward P/E of 7.65.

Meanwhile, CPA's PEG ratio is currently 0.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CPA's industry had an average PEG ratio of 0.38 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 35% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Copa Holdings, S.A. (CPA) - free report >>

Published in