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Copa Holdings (CPA) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest trading session, Copa Holdings (CPA - Free Report) closed at $103.81, marking a -1.3% move from the previous day. This change lagged the S&P 500's 0.29% loss on the day. Meanwhile, the Dow lost 0.35%, and the Nasdaq, a tech-heavy index, lost 0.3%.

The holding company for Panama's national airline's shares have seen an increase of 5.62% over the last month, surpassing the Transportation sector's gain of 3.75% and the S&P 500's gain of 4.42%.

The upcoming earnings release of Copa Holdings will be of great interest to investors. The company is expected to report EPS of $3.14, down 21.3% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $848.71 million, showing a 2.14% drop compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $16.14 per share and a revenue of $3.71 billion, indicating changes of -3.87% and +7.16%, respectively, from the former year.

Any recent changes to analyst estimates for Copa Holdings should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.79% lower within the past month. Right now, Copa Holdings possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Copa Holdings has a Forward P/E ratio of 6.52 right now. Its industry sports an average Forward P/E of 8.89, so one might conclude that Copa Holdings is trading at a discount comparatively.

Investors should also note that CPA has a PEG ratio of 0.38 right now. 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.73 based on yesterday's closing prices.

The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 32% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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