Copa Holdings (CPA) shares ended the last trading session 6.8% higher at $119.17. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 11.1% loss over the past four weeks.
The uptick came after Bank of America reiterated a Buy rating on Copa Holdings due to attractive valuation. The bullish stance of Bank of America on this Latin American carrier came despite the pressure induced by high oil prices.
This holding company for Panama's national airline is expected to post quarterly earnings of $4.54 per share in its upcoming report, which represents a year-over-year change of +6.1%. Revenues are expected to be $1.03 billion, up 14.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Copa Holdings, the consensus EPS estimate for the quarter has been revised 17.4% 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 part of the Zacks Transportation - Airline industry. Surf Air Mobility Inc. (SRFM), another stock in the same industry, closed the last trading session 7% higher at $1.23. SRFM has returned -38.5% in the past month.
Surf Air Mobility Inc.'s consensus EPS estimate for the upcoming report has changed -80.4% over the past month to -$0.47. Compared to the company's year-ago EPS, this represents a change of +64.1%. Surf Air Mobility Inc. currently boasts a Zacks Rank of #3 (Hold).
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Copa Holdings, S.A. (CPA): Free Stock Analysis Report
Surf Air Mobility Inc. (SRFM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).