Copa Holdings, S.A. CPA has proven its mettle in the past year and shows potential for continued success. If you haven’t already capitalized on its stock price upswing, the moment has come to incorporate this stock into your investment portfolio.
Let’s delve into the compelling factors that make CPA a smart choice at this juncture.
Outperformance and Growth
Copa Holdings’ shares have surged 4.1% in the last year, impressively outperforming an industry that suffered a 9% decline.
Image Source: Zacks Investment Research
Copa Holdings ranks #1 (Strong Buy) with a VGM Score of A. Combining a strong VGM Score with a Zacks Rank #1 or 2 (Buy) historically results in prime investment opportunities.
Analysts have overwhelmingly revised their estimates upwards for 2023, with the Zacks Consensus Estimate for 2023 earnings witnessing a 5.5% surge in the past 60 days.
CPA’s earning prospects look promising, with the Zacks Consensus Estimate for 2023 pegged at $15.26 per share and an expected 2.6% growth in 2024.
Driving Factors and Solid Fundamentals
The company’s third-quarter 2023 performance was buoyed by robust air-travel demand, leading to a 7.2% year-over-year increase in operating revenues. Moreover, strong long-term growth prospects are indicated, with passenger revenues (contributing 96% to the total) and traffic showing notable upward trajectory.
For the current year, CPA forecasts impressive growth metrics, including a projected increase in load factor and consolidated capacity, as well as a reduction in operating expenses.
Spotlight on Other Key Picks
For investors eyeing the Transportation sector, other noteworthy stocks include Ryanair Holdings and SkyWest, both presenting promising investment prospects.
Ryanair Holdings is showcasing remarkable growth post-Covid, with an optimistic outlook for fiscal 2024. Meanwhile, SkyWest‘s focused initiatives and shareholder rewards paint a compelling investment picture.
Curious about the Zacks #1 Rank stocks? You can find the complete list here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
