Copa Holdings (CPA) closed the most recent trading day at $117.59, moving -1.04% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.34% for the day. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.42%.
Coming into today, shares of the holding company for Panama's national airline had gained 2.19% in the past month. In that same time, the Transportation sector lost 0.18%, while the S&P 500 gained 3.54%.
The upcoming earnings release of Copa Holdings will be of great interest to investors. The company is forecasted to report an EPS of $4.04, showcasing a 15.43% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $916.67 million, up 7.25% from the year-ago period.
CPA's full-year Zacks Consensus Estimates are calling for earnings of $16.53 per share and revenue of $3.61 billion. These results would represent year-over-year changes of +13.53% and +4.73%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Copa Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Copa Holdings holds a Zacks Rank of #3 (Hold).
In the context of valuation, Copa Holdings is at present trading with a Forward P/E ratio of 7.19. This valuation marks a discount compared to its industry average Forward P/E of 10.11.
One should further note that CPA currently holds a PEG ratio of 1.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.81.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Copa Holdings, S.A. (CPA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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