Here's Why Copa Holdings (CPA) Gained But Lagged the Market Today
Copa Holdings (CPA) closed the most recent trading day at $90.82, moving +0.34% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.88%. Meanwhile, the Dow gained 0.54%, and the Nasdaq, a tech-heavy index, added 1.35%.
The the stock of holding company for Panama's national airline has fallen by 11.96% in the past month, lagging the Transportation sector's loss of 4.84% and the S&P 500's gain of 0.64%.
Investors will be eagerly watching for the performance of Copa Holdings in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 7, 2024. The company's upcoming EPS is projected at $3.94, signifying a 12.25% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $889 million, down 0.18% from the prior-year quarter.
Any recent changes to analyst estimates for Copa Holdings should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 3.11% rise in the Zacks Consensus EPS estimate. As of now, Copa Holdings holds a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Copa Holdings is at present trading with a Forward P/E ratio of 5.78. This expresses a discount compared to the average Forward P/E of 7.98 of its industry.
One should further note that CPA currently holds a PEG ratio of 0.32. 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. CPA's industry had an average PEG ratio of 0.42 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
