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

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The latest trading session saw Copa Holdings (CPA - Free Report) ending at $97.30, denoting a -1.87% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 1.86%. Elsewhere, the Dow lost 0.9%, while the tech-heavy Nasdaq lost 2.76%.

The holding company for Panama's national airline's stock has climbed by 5.86% in the past month, exceeding the Transportation sector's loss of 2.01% and the S&P 500's gain of 1.01%.

The upcoming earnings release of Copa Holdings will be of great interest to investors. The company's earnings report is expected on November 20, 2024. The company is expected to report EPS of $3.48, down 20.73% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $860.34 million, down 0.85% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $14.62 per share and a revenue of $3.48 billion, demonstrating changes of -12.92% and +0.66%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Copa Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.53% rise in the Zacks Consensus EPS estimate. Copa Holdings is currently a Zacks Rank #2 (Buy).

With respect to valuation, Copa Holdings is currently being traded at a Forward P/E ratio of 6.78. For comparison, its industry has an average Forward P/E of 11.01, which means Copa Holdings is trading at a discount to the group.

Also, we should mention that CPA has a PEG ratio of 0.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.92.

The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 15, this industry ranks in the top 6% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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