Copa Holdings (CPA) Suffers a Larger Drop Than the General Market: Key Insights
In the latest market close, Copa Holdings (CPA) reached $81.34, with a -1.24% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.85%. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 0.96%.
Shares of the holding company for Panama's national airline witnessed a loss of 12.06% over the previous month, trailing the performance of the Transportation sector with its loss of 5.76% and the S&P 500's loss of 3.02%.
The investment community will be closely monitoring the performance of Copa Holdings in its forthcoming earnings report. The company is scheduled to release its earnings on November 15, 2023. The company is predicted to post an EPS of $3.62, indicating a 24.4% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $875.08 million, indicating an 8.11% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.62 per share and revenue of $3.45 billion. These totals would mark changes of +77% and +16.28%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Copa Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.7% higher. Right now, Copa Holdings possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Copa Holdings is currently exchanging hands at a Forward P/E ratio of 5.63. Its industry sports an average Forward P/E of 6.71, so one might conclude that Copa Holdings is trading at a discount comparatively.
Investors should also note that CPA has a PEG ratio of 0.29 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Airline industry currently had an average PEG ratio of 0.34 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 234, putting it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
