Zacks Investment Ideas feature highlights: Copa Holdings, Euroseas, LATAM Airlines Group, Delta Air Lines and United Airlines

For Immediate ReleaseChicago, IL – June 10, 2025 – Today, Zacks Investment Ideas feature highlights Copa Holdings CPA, Euroseas ESEA, LATAM Airlines Group LTM, Delta Air Lines DAL and United Airlines UAL.Two Transportation Stocks to Buy for Higher HighsAmid the stock market’s historic rebound, transportation sector stocks have joined the rally, with a few ADRs (American Depository Receipts) standing out in particular in airline operator Copa Holdings and container shipping company Euroseas.Hitting new 52-week peaks in June, what makes these top-rated transportation stocks stand out the most is their generous dividends, especially considering they look poised to reach higher highs.Copa’s Industry-Leading MarginsHeadquartered in Panama City, Panama, Copa Airlines has become the premier airline in Central America, flying to over 60 destinations in North and South America and the Caribbean. Capitalizing on increased travel demand following the pandemic, Copa has been able to sustain operating margins of more than 20%, making it one of the most profitable airlines globally.Notably, this trumps most Latin American airlines, including LATAM Airlines Group and many of its U.S. counterparts, with Delta Air Lines and United Airlines having the highest operating margins among domestic carriers at around 10-12%. Considering Copa’s outstanding operational performance, it's very appealing that the airline expects to boost its capacity by 7-8% this year.Correlating with such, Copa Holdings’ EPS is currently slated to spike 14% in fiscal 2025 to $16.64 per share. Plus, FY25 EPS estimates are up 6% in the last 60 days from projections of $15.60.Euroseas’s Strategic Fleet ManagementLike Copa Holdings, Euroseas is highly profitable thanks to its efficient fleet management and strong market position, having operations out of Athens, Greece, for more than 130 years. This allows Euroseas to benefit from strong charter rates, which significantly boost revenue. Furthermore, Euroseas strategically manages its fleet, selling older vessels and acquiring newer, more efficient ships to optimize profitability.Speaking of such, Euroseas recently announced the sale of its 2005-built containership, M/V Marcos V, for $50 million. Euroseas’s bottom line is expected to dip 2% in FY25 to $14.50 per share, but EPS estimates are slightly up over the last week and have now risen 2% in the last 60 days.Euroseas & Copa’s Cheap P/E ValuationLargely suggesting more upside in Copa and Euroseas stock is that CPA and ESEA trade at just 6.4X and 2.8X forward earnings, respectively. Reassuringly, this also alludes to the notion that the risk-to-reward is still favorable even with CPA shares soaring over +20% year to date and ESEA up more than +15%.Euroseas & Copa’s Enticing DividendsAforementioned, the cherry on top is that CPA and ESEA offer very generous annual dividends of more than 5%. Copa’s dividend further separates the company from its peers, as many airline stocks don’t offer a payout to shareholders due to high operating costs.While many transportation-shipping stocks offer appealing dividends, ESEA has a 6.36% yield that towers over its Zacks industry average of 2.43%. Even better, Euroseas’s payout ratio is only at 16%, indicating there is plenty of room for future dividend hikes.Bottom LineCopa Holdings stock currently sports a Zacks Rank #1 (Strong Buy) with the Average Zacks Price Target of $152 a share, suggesting 41% upside for CPA. Meanwhile, Euroseas stock is sporting a Zacks Rank #2 (Buy) with the Average Zacks Price Target of $56 a share, offering 37% upside for ESEA.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.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 Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Airlines Holdings Inc (UAL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report Euroseas Ltd. (ESEA): 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