Is Copa Holdings (CPA) a Great Value Stock Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.One company to watch right now is Copa Holdings (CPA). CPA is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.1, which compares to its industry's average of 10.78. Over the past year, CPA's Forward P/E has been as high as 6.76 and as low as 4.82, with a median of 5.85. Investors will also notice that CPA has a PEG ratio of 0.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CPA's PEG compares to its industry's average PEG of 1.02. Over the past 52 weeks, CPA's PEG has been as high as 0.86 and as low as 0.19, with a median of 0.66. We should also highlight that CPA has a P/B ratio of 1.75. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.22. CPA's P/B has been as high as 1.95 and as low as 1.38, with a median of 1.68, over the past year.Finally, investors should note that CPA has a P/CF ratio of 4.63. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CPA's P/CF compares to its industry's average P/CF of 6.70. Over the past year, CPA's P/CF has been as high as 4.83 and as low as 3.48, with a median of 4.08.Value investors will likely look at more than just these metrics, but the above data helps show that Copa Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, CPA sticks out as one of the market's strongest value stocks.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks