Copa Holdings (CPA) shares rallied 6.7% in the last trading session to close at $130.03. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.4% gain over the past four weeks.
The uptick resulted in shares of this Latin American carrier hitting a new 52-week high on Jan. 5. The carrier is being well-served by the improvement in air travel demand. Shares of airline gained over 37% in 2025, and is expected to continue performing well in 2026, driven by high passenger revenues and fleet expansion initiatives.
This holding company for Panama's national airline is expected to post quarterly earnings of $4.44 per share in its upcoming report, which represents a year-over-year change of +11.3%. Revenues are expected to be $968.08 million, up 10.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Copa Holdings, the consensus EPS estimate for the quarter has been revised 1.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CPA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Copa Holdings is a member of the Zacks Transportation - Airline industry. One other stock in the same industry, American Airlines (AAL), finished the last trading session 2.3% higher at $15.83. AAL has returned 4.5% over the past month.
For American Airlines, the consensus EPS estimate for the upcoming report has changed +39% over the past month to $0.38. This represents a change of -55.8% from what the company reported a year ago. American Airlines currently has a Zacks Rank of #3 (Hold).
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Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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