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In the latest market close, Copa Holdings (CPA) reached $88.87, with a +0.3% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 1.09%. Elsewhere, the Dow saw an upswing of 1.18%, while the tech-heavy Nasdaq appreciated by 1.03%.
Coming into today, shares of the holding company for Panama's national airline had lost 4.48% in the past month. In that same time, the Transportation sector lost 5.95%, while the S&P 500 lost 0.71%.
The investment community will be closely monitoring the performance of Copa Holdings in its forthcoming earnings report. The company is predicted to post an EPS of $3.88, indicating a 13.2% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $883.98 million, indicating a 3.59% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.45 per share and revenue of $3.45 billion. These totals would mark changes of -13.94% and -0.27%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Copa Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 1.38% fall in the Zacks Consensus EPS estimate. Copa Holdings is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Copa Holdings has a Forward P/E ratio of 6.13 right now. This denotes a discount relative to the industry's average Forward P/E of 10.
One should further note that CPA currently holds a PEG ratio of 0.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.96 based on yesterday's closing prices.