The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Copa Holdings (CPA) is a stock many investors are watching right now. CPA is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.79. This compares to its industry's average Forward P/E of 10.06. Over the past 52 weeks, CPA's Forward P/E has been as high as 6.96 and as low as 5.19, with a median of 6.04.
Another valuation metric that we should highlight is CPA's P/B ratio of 1.93. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.39. Over the past year, CPA's P/B has been as high as 1.95 and as low as 1.38, with a median of 1.70.
Finally, investors will want to recognize that CPA has a P/CF ratio of 5.10. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.05. Within the past 12 months, CPA's P/CF has been as high as 5.14 and as low as 3.65, with a median of 4.27.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Copa Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CPA feels like a great value stock at the moment.
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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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