We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Copa Holdings (CPA) Stock?
Read MoreHide Full Article
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Copa Holdings (CPA - Free Report) . CPA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.16, which compares to its industry's average of 15.99. CPA's Forward P/E has been as high as 8.80 and as low as 5.32, with a median of 6.39, all within the past year.
Investors will also notice that CPA has a PEG ratio of 0.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CPA's PEG compares to its industry's average PEG of 0.80. Within the past year, CPA's PEG has been as high as 0.39 and as low as 0.27, with a median of 0.35.
Investors should also recognize that CPA has a P/B ratio of 1.90. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.56. Within the past 52 weeks, CPA's P/B has been as high as 3.04 and as low as 1.55, with a median of 1.96.
Finally, investors will want to recognize that CPA has a P/CF ratio of 5.49. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CPA's current P/CF looks attractive when compared to its industry's average P/CF of 7.36. 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 5.56.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Copa Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CPA feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Copa Holdings (CPA - Free Report) . CPA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.16, which compares to its industry's average of 15.99. CPA's Forward P/E has been as high as 8.80 and as low as 5.32, with a median of 6.39, all within the past year.
Investors will also notice that CPA has a PEG ratio of 0.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CPA's PEG compares to its industry's average PEG of 0.80. Within the past year, CPA's PEG has been as high as 0.39 and as low as 0.27, with a median of 0.35.
Investors should also recognize that CPA has a P/B ratio of 1.90. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.56. Within the past 52 weeks, CPA's P/B has been as high as 3.04 and as low as 1.55, with a median of 1.96.
Finally, investors will want to recognize that CPA has a P/CF ratio of 5.49. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CPA's current P/CF looks attractive when compared to its industry's average P/CF of 7.36. 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 5.56.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Copa Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CPA feels like a great value stock at the moment.