Copa Holdings, S.A. (CPA) Soars to 52-Week High, Time to Cash Out?

Have you been paying attention to shares of Copa Holdings (CPA)? Shares have been on the move with the stock up 18.8% over the past month. The stock hit a new 52-week high of $109.55 in the previous session. Copa Holdings has gained 23.7% since the start of the year compared to the -7.1% move for the Zacks Transportation sector and the -7.8% return for the Zacks Transportation - Airline industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 7, 2025, Copa Holdings reported EPS of $4.28 versus consensus estimate of $3.77 while it beat the consensus revenue estimate by 1.09%.For the current fiscal year, Copa Holdings is expected to post earnings of $16.64 per share on $3.6 billion in revenues. This represents a 14.29% change in EPS on a 4.51% change in revenues. For the next fiscal year, the company is expected to earn $17.89 per share on $3.89 billion in revenues. This represents a year-over-year change of 7.5% and 8.11%, respectively.Valuation MetricsCopa Holdings may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Copa Holdings has a Value Score of A. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 6.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 9.3X. On a trailing cash flow basis, the stock currently trades at 4.8X versus its peer group's average of 3.9X. Additionally, the stock has a PEG ratio of 0.77. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Copa Holdings currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Copa Holdings meets the list of requirements. Thus, it seems as though Copa Holdings shares could still be poised for more gains ahead.How Does CPA Stack Up to the Competition?Shares of CPA have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is LATAM Airlines Group S.A. (LTM). LTM has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of D.Earnings were strong last quarter. LATAM Airlines Group S.A. beat our consensus estimate by 93.44%, and for the current fiscal year, LTM is expected to post earnings of $4.12 per share on revenue of $13.95 billion.Shares of LATAM Airlines Group S.A. have gained 19.5% over the past month, and currently trade at a forward P/E of 9.23X and a P/CF of 11.75X.The Transportation - Airline industry may rank in the bottom 54% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for CPA and LTM, even beyond their own solid fundamental situation.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks