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.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 205, placing it within the bottom 16% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Copa Holdings, S.A. (CPA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).