Here's Why Copa Holdings (CPA) is a Strong Value Stock

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  • May 30, 2025

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Copa Holdings (CPA)

Copa Holdings is based in Panama City, Panama. The company, through its main subsidiaries — Copa Airlines and Copa Colombia — offers airline passenger and cargo services. Copa Airlines was founded in 1947. Copa Columbia was purchased in 2005.

CPA is a Zacks Rank #1 (Strong Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 6.6X for the current fiscal year compared to the Transportation - Airline industry's P/E of 9.3X. Additionally, CPA has a PEG Ratio of 0.8 and a Price/Cash Flow ratio of 4.8X. Value investors should also note CPA's Price/Sales ratio of 1.3X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $1.04 to $16.64 per share. CPA has an average earnings surprise of 5.5%.

Investors should take the time to consider CPA for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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Copa Holdings, S.A. (CPA) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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