Should Value Investors Buy Copa Holdings (CPA) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Copa Holdings (CPA). CPA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.02, while its industry has an average P/E of 9.56. Over the last 12 months, CPA's Forward P/E has been as high as 9 and as low as 5.32, with a median of 6.93.
We also note that CPA holds a PEG ratio of 0.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CPA's industry has an average PEG of 0.44 right now. CPA's PEG has been as high as 0.39 and as low as 0.27, with a median of 0.33, all within the past year.
Investors should also recognize that CPA has a P/B ratio of 1.84. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. CPA's current P/B looks attractive when compared to its industry's average P/B of 3.45. Within the past 52 weeks, CPA's P/B has been as high as 3.04 and as low as 1.55, with a median of 2.27.
Finally, investors should note that CPA has a P/CF ratio of 5.31. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.05. Within the past 12 months, CPA's P/CF has been as high as 7.75 and as low as 4.60, with a median of 5.74.
If you're looking for another solid Transportation - Airline value stock, take a look at Controladora Vuela Compania de Aviacion, B. de C.V. (VLRS). VLRS is a # 2 (Buy) stock with a Value score of A.
Controladora Vuela Compania de Aviacion, B. de C.V. is trading at a forward earnings multiple of 34.01 at the moment, with a PEG ratio of -2.17. This compares to its industry's average P/E of 9.56 and average PEG ratio of 0.44.
VLRS's price-to-earnings ratio has been as high as 6,243.17 and as low as -73,021.84, with a median of 9.57, while its PEG ratio has been as high as 644.96 and as low as -7,543.58, with a median of 0.47, all within the past year.
Additionally, Controladora Vuela Compania de Aviacion, B. de C.V. has a P/B ratio of 5.04 while its industry's price-to-book ratio sits at 3.45. For VLRS, this valuation metric has been as high as 8.02, as low as 3.47, with a median of 5.56 over the past year.
These are only a few of the key metrics included in Copa Holdings and Controladora Vuela Compania de Aviacion, B. de C.V. strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CPA and VLRS look like an impressive value stock at the moment.
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Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS) : Free Stock Analysis Report
