URI vs. SSD: Which Stock Should Value Investors Buy Now?
Copa Holdings, S.A. CPA reported impressive traffic results for May. Traffic, measured in revenue passenger miles (RPMs), came in at 1.84 billion, up 16.1% from the year-ago figure.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) climbed 13.4% to 2.19 billion. As the escalation in traffic outpaced capacity growth, load factor (% of seats filled by passengers) expanded 200 basis points (bps) to 84.4% in the month.
For the first five months of 2018, Copa Holdings generated RPMs of 8.78 billion (up 11.8% year over year) and ASMs of 10.57 billion (up 10.1%). Load factor registered a rise of 130 bps year over year to 83%.
Copa Holdings, S.A. Price
Copa Holdings, S.A. Price | Copa Holdings, S.A. Quote
Notably, the company has been increasingly benefitting from solid demand for air travel, backed by an improved Latin American economy. The encouraging traffic report can also be attributed to this reason.
A positive scenario is all the more evident from the company’s robust first-quarter results reported last month. Total revenues rose 15.9% year over year, mainly owing to a 16.3% improvement in passenger revenues. The company's performance with respect to unit revenues is laudable as well. Both passenger revenue per available seat miles (PRASM) and RASM ascended 7.2% year over year.
Zacks Rank & Key Picks
Copa Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are GATX Corporation GATX, SkyWest, Inc. SKYW and Expeditors International of Washington, Inc. EXPD. While GATX and SkyWest carry a Zacks Rank #2 (Buy), Expeditors sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of GATX and Expeditors have rallied more than 18% each, in the past six months, while SkyWest stock has gained above 9%.
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