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6 Reasons Why You Should Add Copa Holdings Stock to Your Portfolio

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Key Takeaways

  • Copa Holdings shares have surged 39.7% this year, far outpacing the airline industry's 3% gain.
  • Estimate revisions and consistent earnings beats highlight broker confidence in Copa Holdings.
  • Copa Holdings targets 7-8% capacity growth in 2025 with margins of 21-23% and an 87% load factor.

Copa Holdings, S.A.(CPA - Free Report) performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.

Against this backdrop, let’s look at the factors that make this stock an attractive pick.

What Makes CPA an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse on a year-to-date basis. Shares of CPA have gained 39.7% so far this year, outperforming the 3% increase of the Zacks Airline industry.

CPA Stock YTD Price Comparison

Zacks Investment Research Image Source: Zacks Investment Research

Solid Rank & VGM Score: CPA has a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.

Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. The Zacks Consensus Estimate for 2025 earnings has moved 0.3% north in the past 60 days. For 2026, the consensus mark for earnings has been revised to 0.95% upward in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

Positive Earnings Surprise History: CPA has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average beat of 7.27%.

Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2025, CPA’s earnings are expected to grow 15.43% year over year. For 2025, CPA’s earnings are expected to improve 13.53% year over year.

Growth Factors:An improvement in air-travel demand bodes well for Copa Holdings' top line. To meet the upbeat demand, CPA is boosting capacity. For 2025, CPA expects consolidated capacity to grow 7-8% year over year, and the operating margin is expected to be in the range of 21-23%. The load factor for 2025 is expected to be 87% (higher than 86.3% reported in 2024).

CPA's fleet expansion and modernization initiatives are commendable. Apart from adding planes, this carrier is replacing the outdated models as part of its fleet modernization efforts to lower CO2 emissions. CPA expects to end 2025 with 125 aircraft and 2026 with 131 aircraft.

Other Stocks to Consider

Investors interested in the Transportation sector may also consider Wabtec Corporation (WAB - Free Report) and Global Ship Lease (GSL - Free Report) . Each stock presently carries a Zacks Rank #2.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Wabtec has an impressive earnings surprise track record, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missed the mark in the remaining quarter), with the average beat being 5.41%. The Zacks Consensus Estimate for WAB’s 2025 earnings has been revised 1.60% upward in the past 90 days.

Shares of Wabtec have gained 10.6% over the past year. WAB’s 2025 earnings are expected to grow 17.59% year over year. 

GSL has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.16%. The Zacks Consensus Estimate for GSL’s 2025 earnings has been revised 0.40% upward in the past 90 days.

A look at the company’s price trend reveals that its shares have surged 28.7% in the year-to-date period, surpassing the  Zacks Transportation - Shipping industry’s 0.4% growth.


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