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Should Value Investors Buy Copa Holdings (CPA) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Copa Holdings (CPA - Free Report) . CPA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.08, which compares to its industry's average of 9.82. Over the last 12 months, CPA's Forward P/E has been as high as 9.22 and as low as 5.32, with a median of 7.18.
We also note that CPA holds a PEG ratio of 0.34. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CPA's PEG compares to its industry's average PEG of 0.35. Within the past year, CPA's PEG has been as high as 0.39 and as low as 0.27, with a median of 0.31.
Another notable valuation metric for CPA is its P/B ratio of 1.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CPA's current P/B looks attractive when compared to its industry's average P/B of 3.31. Over the past year, CPA's P/B has been as high as 3.04 and as low as 1.55, with a median of 2.39.
Investors could also keep in mind Deutsche Lufthansa (DLAKY - Free Report) , an Transportation - Airline stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Deutsche Lufthansa are currently trading at a forward earnings multiple of 4.78 and a PEG ratio of 0.21 compared to its industry's P/E and PEG ratios of 9.82 and 0.35, respectively.
DLAKY's price-to-earnings ratio has been as high as 20.05 and as low as 4.14, with a median of 5.82, while its PEG ratio has been as high as 0.24 and as low as 0.16, with a median of 0.19, all within the past year.
Additionally, Deutsche Lufthansa has a P/B ratio of 0.86 while its industry's price-to-book ratio sits at 3.31. For DLAKY, this valuation metric has been as high as 0.97, as low as 0.54, with a median of 0.73 over the past year.
These are just a handful of the figures considered in Copa Holdings and Deutsche Lufthansa's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CPA and DLAKY is an impressive value stock right now.
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Should Value Investors Buy Copa Holdings (CPA) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Copa Holdings (CPA - Free Report) . CPA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.08, which compares to its industry's average of 9.82. Over the last 12 months, CPA's Forward P/E has been as high as 9.22 and as low as 5.32, with a median of 7.18.
We also note that CPA holds a PEG ratio of 0.34. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CPA's PEG compares to its industry's average PEG of 0.35. Within the past year, CPA's PEG has been as high as 0.39 and as low as 0.27, with a median of 0.31.
Another notable valuation metric for CPA is its P/B ratio of 1.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CPA's current P/B looks attractive when compared to its industry's average P/B of 3.31. Over the past year, CPA's P/B has been as high as 3.04 and as low as 1.55, with a median of 2.39.
Investors could also keep in mind Deutsche Lufthansa (DLAKY - Free Report) , an Transportation - Airline stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Deutsche Lufthansa are currently trading at a forward earnings multiple of 4.78 and a PEG ratio of 0.21 compared to its industry's P/E and PEG ratios of 9.82 and 0.35, respectively.
DLAKY's price-to-earnings ratio has been as high as 20.05 and as low as 4.14, with a median of 5.82, while its PEG ratio has been as high as 0.24 and as low as 0.16, with a median of 0.19, all within the past year.
Additionally, Deutsche Lufthansa has a P/B ratio of 0.86 while its industry's price-to-book ratio sits at 3.31. For DLAKY, this valuation metric has been as high as 0.97, as low as 0.54, with a median of 0.73 over the past year.
These are just a handful of the figures considered in Copa Holdings and Deutsche Lufthansa's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CPA and DLAKY is an impressive value stock right now.