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Here's Why Investors Should Invest in Copa Holdings (CPA)

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Copa Holdings, S.A. (CPA - Free Report) is benefiting from continued recovery in air-travel demand. Fleet modernization efforts also look encouraging.

Against this backdrop, let’s look at the factors that make this stock an attractive pick.

What Makes Copa Holdings an Attractive Pick?

Solid Rank & VGM Score: Copa Holdings currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.

Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Copa Holdings’ 2024 earnings has moved up 6% year over year.

Positive Earnings Surprise History: CPA has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 18.02%.

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past year. Shares of Copa Holdings have gained 1.7% over the past year.

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Growth Factors:Upbeat air travel demand has been aiding Copa Holdings' revenues. Management expects the current-year load factor (percentage of seats filled by passengers) to be in the 86-87% band, assuming the rosy traffic scenario continues. For 2024, the company suggests consolidated capacity or available seat miles to register 10% growth year over year. Operating margin is projected in the range of 21-23%.

The carrier’s fleet modernization efforts also look encouraging. Copa Holdings anticipates to end 2024 with 117 planes in its fleet.

Other Stocks to Consider

Some other top-ranked stocks from the Zacks Transportation sector are GATX Corporation (GATX - Free Report) and SkyWest, Inc. (SKYW - Free Report) . Each stock presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

GATX has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 16.47%.

The Zacks Consensus Estimate for 2024 earnings has been revised 6.1% upward over the past 90 days. GATX has an expected earnings growth rate of 3.68% for 2024. Shares of GATX have gained 13.9% in the past year.

SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 11.1% over the past 90 days. Shares of SKYW have surged 222.2% in the past year.

SKYW has an expected earnings growth rate of more than 100% for 2024. SKYW delivered a trailing four-quarter earnings surprise of 128.02%, on average.


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Copa Holdings, S.A. (CPA) - free report >>

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