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Are Investors Undervaluing Copa Holdings (CPA) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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 #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.02. This compares to its industry's average Forward P/E of 9.36. Over the last 12 months, CPA's Forward P/E has been as high as 8.80 and as low as 5.32, with a median of 6.73.
CPA is also sporting a PEG ratio of 0.35. 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 currently sports an average PEG of 0.38. Within the past year, CPA's PEG has been as high as 0.39 and as low as 0.27, with a median of 0.34.
Another valuation metric that we should highlight is CPA's P/B ratio of 1.83. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.82. 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 2.24.
Finally, investors should note that CPA has a P/CF ratio of 5.28. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CPA's P/CF compares to its industry's average P/CF of 6.22. Over the past year, CPA's P/CF has been as high as 7.75 and as low as 4.60, with a median of 5.68.
These are just a handful of the figures considered in Copa Holdings'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 is an impressive value stock right now.
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Are Investors Undervaluing Copa Holdings (CPA) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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 #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.02. This compares to its industry's average Forward P/E of 9.36. Over the last 12 months, CPA's Forward P/E has been as high as 8.80 and as low as 5.32, with a median of 6.73.
CPA is also sporting a PEG ratio of 0.35. 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 currently sports an average PEG of 0.38. Within the past year, CPA's PEG has been as high as 0.39 and as low as 0.27, with a median of 0.34.
Another valuation metric that we should highlight is CPA's P/B ratio of 1.83. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.82. 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 2.24.
Finally, investors should note that CPA has a P/CF ratio of 5.28. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CPA's P/CF compares to its industry's average P/CF of 6.22. Over the past year, CPA's P/CF has been as high as 7.75 and as low as 4.60, with a median of 5.68.
These are just a handful of the figures considered in Copa Holdings'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 is an impressive value stock right now.