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Should Value Investors Buy Copa Holdings (CPA) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 6.27, which compares to its industry's average of 11.46. CPA's Forward P/E has been as high as 6.76 and as low as 4.82, with a median of 5.82, all within the past year.
We also note that CPA holds a PEG ratio of 0.74. 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 industry has an average PEG of 1.09 right now. CPA's PEG has been as high as 0.86 and as low as 0.19, with a median of 0.65, all within the past year.
Another valuation metric that we should highlight is CPA's P/B ratio of 1.79. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.40. CPA's P/B has been as high as 1.95 and as low as 1.38, with a median of 1.68, over the past year.
Finally, investors should note that CPA has a P/CF ratio of 4.73. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CPA's P/CF compares to its industry's average P/CF of 7.08. CPA's P/CF has been as high as 4.83 and as low as 3.48, with a median of 4.08, all within the past year.
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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Should Value Investors Buy Copa Holdings (CPA) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 6.27, which compares to its industry's average of 11.46. CPA's Forward P/E has been as high as 6.76 and as low as 4.82, with a median of 5.82, all within the past year.
We also note that CPA holds a PEG ratio of 0.74. 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 industry has an average PEG of 1.09 right now. CPA's PEG has been as high as 0.86 and as low as 0.19, with a median of 0.65, all within the past year.
Another valuation metric that we should highlight is CPA's P/B ratio of 1.79. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.40. CPA's P/B has been as high as 1.95 and as low as 1.38, with a median of 1.68, over the past year.
Finally, investors should note that CPA has a P/CF ratio of 4.73. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CPA's P/CF compares to its industry's average P/CF of 7.08. CPA's P/CF has been as high as 4.83 and as low as 3.48, with a median of 4.08, all within the past year.
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.