Copa Holdings (CPA) ended the recent trading session at $141.69, demonstrating a +1.87% change from the preceding day’s closing price. This move outpaced the S&P 500’s daily gain of 0.5%. Meanwhile, the Dow experienced a rise of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.31%.
Shares of the holding company for Panama’s national airline have appreciated by 2.64% over the course of the past month, underperforming the Transportation sector’s gain of 5.1%, and outperforming the S&P 500’s loss of 0.23%.
Market participants will be closely following the financial results of Copa Holdings in its upcoming release. On that day, Copa Holdings is projected to report earnings of $1.72 per share, which would represent a year-over-year decline of 52.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.07 billion, up 27.47% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.18 per share and a revenue of $4.37 billion, representing changes of -6.76% and +20.69%, respectively, from the prior year.
Any recent changes to analyst estimates for Copa Holdings should also be noted by investors. 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 business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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, the Zacks Consensus EPS estimate has shifted 6.82% upward. Copa Holdings is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Copa Holdings is currently being traded at a Forward P/E ratio of 9.16. This denotes a discount relative to the industry average Forward P/E of 11.65.
We can additionally observe that CPA currently boasts a PEG ratio of 1.11. 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. As the market closed yesterday, the Transportation – Airline industry was having an average PEG ratio of 1.02.
