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Copa Holdings (CPA) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, Copa Holdings (CPA - Free Report) closed at $119.96, marking a +1.36% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.79%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 1.38%.

Coming into today, shares of the holding company for Panama's national airline had lost 6.4% in the past month. In that same time, the Transportation sector gained 9.32%, while the S&P 500 gained 0.87%.

The investment community will be closely monitoring the performance of Copa Holdings in its forthcoming earnings report. The company is expected to report EPS of $4.44, up 11.28% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $968.08 million, indicating a 10.38% upward movement from the same quarter last year.

CPA's full-year Zacks Consensus Estimates are calling for earnings of $16.74 per share and revenue of $3.62 billion. These results would represent year-over-year changes of +14.97% and +5.17%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Copa Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.35% increase. Currently, Copa Holdings is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Copa Holdings is at present trading with a Forward P/E ratio of 7.07. This denotes a discount relative to the industry average Forward P/E of 11.91.

It is also worth noting that CPA currently has a PEG ratio of 1.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Transportation - Airline was holding an average PEG ratio of 0.83 at yesterday's closing price.

The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 144, finds itself in the bottom 42% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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