In the latest trading session, Copa Holdings (CPA) closed at $155.53, marking a -1.06% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.18%. Elsewhere, the Dow saw an upswing of 0.59%, while the tech-heavy Nasdaq appreciated by 2.07%.
Shares of the holding company for Panama's national airline have appreciated by 10.01% over the course of the past month, outperforming the Transportation sector's gain of 2.8%, and the S&P 500's loss of 2.9%.
The investment community will be closely monitoring the performance of Copa Holdings in its forthcoming earnings report. The company is expected to report EPS of $1.9, down 47.37% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.07 billion, reflecting a 27.12% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.96 per share and a revenue of $4.38 billion, signifying shifts of -1.97% and +21.16%, respectively, from the last year.
Any recent changes to analyst estimates for Copa Holdings should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.43% higher within the past month. Copa Holdings is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Copa Holdings's current valuation metrics, including its Forward P/E ratio of 9.85. For comparison, its industry has an average Forward P/E of 11.9, which means Copa Holdings is trading at a discount to the group.
Also, we should mention that CPA has a PEG ratio of 1.2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Airline industry had an average PEG ratio of 1.15 as trading concluded yesterday.
The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 208, positioning it in the bottom 15% 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.
To follow CPA in the coming trading sessions, be sure to utilize 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).