Copa Holdings(CPA)
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3 Solid Stocks to Bet on From the Prospering Airline Industry
ZACKS· 2025-06-25 16:16
Industry Overview - The Zacks Airline industry is involved in transporting passengers and cargo globally, with operators maintaining a fleet of mainline jets and regional planes [3] - The industry includes both legacy carriers and low-cost airlines, and its performance is closely tied to the overall economy [3] - Air travel demand has improved significantly from pandemic lows, indicating a recovery trend [3] Current Market Conditions - The gradual de-escalation of the Israel-Iran conflict has led to a decline in oil prices, positively impacting airline fuel costs [1][9] - The average jet fuel cost is projected to decrease to $86 per barrel in 2025 from $99 per barrel in 2024, contributing to a lower total fuel bill of $236 billion in 2025 compared to $261 billion in 2024 [8] - Despite low fuel costs, airlines are facing increased labor costs due to a post-COVID-19 labor shortage, which is affecting their bottom-line growth [10] Financial Performance and Projections - The International Air Transport Association (IATA) forecasts total airline revenues to reach $979 billion in 2025, with passenger revenues expected to hit $693 billion, marking a 1.6% increase from 2024 [4] - A record 4.99 billion passengers are anticipated to travel globally in 2025, representing a 4% increase from 2024 [4] - The Zacks Airline industry has outperformed the S&P 500, returning 22.7% over the past year compared to the S&P 500's 9.6% rise [14] Shareholder Returns - Airlines are increasingly returning cash to shareholders through dividends and buybacks, reflecting financial strength and confidence [5] - Delta Air Lines has approved a 25% dividend hike, raising its quarterly cash dividend to $0.75 from $0.60, to be paid on August 21, 2025 [6][7] Investment Opportunities - LATAM Airlines is experiencing strong air travel demand, with a 3.6% increase in passengers in Q1 2025 compared to the same period in 2024, and a 28.8% upward revision in earnings estimates [22] - Copa Holdings is benefiting from regional economic expansion and has consistently beaten earnings estimates, with upward revisions of 6.3% and 4.5% for current and next-year earnings, respectively [26][27] - SkyWest has gained 7.5% over the past three months, with a 3.5% upward revision in earnings estimates for 2025 [31]
Buscar Company Advances Toward Fully Reporting Status and OTCQX Uplisting with Appointment of Barton CPA PLLC and SEC Legal Counsel
Prnewswire· 2025-06-23 10:00
Core Insights - Buscar Company is taking significant steps to achieve fully reporting status with the U.S. SEC and uplist to the OTCQX Market, which is known for its high financial standards and robust disclosure requirements [1][2][4] - The company has engaged Barton CPA PLLC for a comprehensive audit to ensure compliance with SEC reporting standards, reflecting its commitment to transparency and regulatory excellence [1][4] - Buscar has also retained a specialized SEC law firm to prepare and file a Form 10, marking a critical milestone in its journey to becoming a fully reporting company [2][4] Company Overview - Buscar Company (OTC: CGLD) is a diversified holding company focused on natural resources, sustainable technologies, and pharmaceuticals, headquartered in Beverly Hills, California [5] - The company oversees Eon Discovery Inc., which manages gold mining operations, Terramer Inc., a leader in hemp-based biodegradable bioplastics, and Armorgenix, a pharmaceutical innovator [5] - Established through a strategic evolution, including a reverse merger with Eon Discovery in 2020, Buscar is committed to driving growth and delivering shareholder value through innovation and diversification [5] Strategic Goals - By pursuing fully reporting status and an uplisting to the OTCQX Market, Buscar aims to enhance its market presence, attract a broader investor base, and provide greater liquidity for shareholders [4] - The audit process and Form 10 filing are integral to achieving these strategic goals, demonstrating the company's dedication to building trust with shareholders [4][5]
Will Copa Holdings' Operating Margin Continue to Be Robust in 2025?
ZACKS· 2025-06-20 15:20
Core Insights - Copa Holdings (CPA) has demonstrated strong operating margins, indicating effective management of operating costs and profitability from core business activities [1][3]. Operating Margin Performance - Copa Airlines has maintained operating margins exceeding 20%, with reported figures of 23.5% in 2023 and 21.9% in 2024. The company anticipates an adjusted operating margin between 21% and 23% for 2025, with a projection of 22.8% [2][8]. - The airline's focus on cost management and operational efficiency has been pivotal in sustaining these margins, even in a challenging market [3][8]. Comparison with Other Airlines - Delta Air Lines reported an adjusted operating margin of 4.6% in Q1 2025, a decrease from 5.1% year-over-year, and expects margins between 11% and 14% in Q2 2025 [5]. - American Airlines faced challenges with adjusted operating margins in Q1 2025, primarily due to rising operating expenses, projecting margins of 6% to 8.5% for the June quarter [6]. Stock Performance and Valuation - CPA's shares have increased by 17.4% over the past six months, outperforming the industry average decline of 12.4% [7]. - The company appears undervalued with a forward price/earnings ratio of 6.02, compared to the industry average of 10.65 [10]. Earnings Estimates - The Zacks Consensus Estimate for CPA's earnings per share (EPS) for 2025 and 2026 has seen upward revisions in the past 30 days, with current estimates at 16.59 for 2025 and 18.02 for 2026 [12][13].
Wall Street's Most Accurate Analysts Spotlight On 3 Industrials Stocks Delivering High-Dividend Yields
Benzinga· 2025-06-20 11:37
Group 1: Market Trends - During turbulent market conditions, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividend payouts [1] - Analysts provide insights on high-yielding stocks, allowing traders to access a comprehensive database of ratings and accuracy [1] Group 2: Company Ratings and Performance - United Parcel Service, Inc. (UPS) has a dividend yield of 6.61%. Analyst Ken Hoexter from B of A Securities maintained a Buy rating and raised the price target from $111 to $115, with an accuracy rate of 62%. UPS reported a quarterly revenue decline of 0.7% year-over-year to $21.546 billion, surpassing the consensus estimate of $21.05 billion [7] - Copa Holdings, S.A. (CPA) has a dividend yield of 6.21%. Analyst Thomas Fitzgerald from TD Cowen maintained a Buy rating but reduced the price target from $145 to $130, with an accuracy rate of 64%. Recent earnings exceeded expectations [7] - Robert Half Inc. (RHI) has a dividend yield of 5.71%. Analyst Manav Patnaik from Barclays maintained an Equal-Weight rating and lowered the price target from $50 to $45, with an accuracy rate of 77%. The company reported worse-than-expected first-quarter financial results [7]
Copa Holdings' May 2025 Traffic Improves Year Over Year
ZACKS· 2025-06-17 14:31
Core Insights - Copa Holdings, S.A. (CPA) reported strong traffic numbers for May 2025, driven by high air travel demand, with revenue passenger miles (RPM) increasing year-over-year [1][8] - To meet the rising demand, CPA increased its capacity, with available seat miles (ASM) growing by 7% year-over-year, while RPM surged by 7.5% [2][8] - The load factor improved to 87.6% from 87.3% in May 2024, indicating that traffic growth outpaced capacity expansion [2][8] Company Performance - CPA holds a Zacks Rank of 1 (Strong Buy), with shares rising 18% year-to-date, contrasting with a 10.7% decline in the Zacks Airline industry [3] - Other airlines, such as Volaris and Ryanair, also reported positive traffic numbers, with Volaris showing a 9% increase in capacity but a decrease in load factor, while Ryanair transported 18.9 million passengers, reflecting a 4% year-over-year increase [5][6][9]
UPS vs. CPA: Which Dividend-Paying Transportation Stock to Bet on Now?
ZACKS· 2025-06-16 16:06
Core Insights - United Parcel Service (UPS) and Copa Holdings (CPA) are both focused on paying dividends to shareholders despite economic uncertainties, showcasing a shareholder-friendly approach [1][2] - Dividend-paying stocks provide stable income and act as a hedge against economic uncertainty, making them attractive for wealth creation [2] Company Performance - Copa Holdings significantly increased its quarterly dividend payout to $1.61 per share (annualized: $6.44) from 82 cents per share (annualized: $3.28) [3] - UPS raised its quarterly cash dividend to $1.64 per share (annualized: $6.56) from $1.63 (annualized: $6.52) [3] - UPS's elevated dividend payout ratio raises concerns about the sustainability of its dividends, while CPA's lower payout ratio suggests long-term sustainability [4][6] Financial Metrics - UPS's free cash flow has declined from a high of $9 billion in 2022 to $6.3 billion at the end of 2024, barely covering its dividend payments of $5.4 billion [5][6] - In contrast, CPA's expected earnings per share (EPS) for 2025 is projected to rise by 14.3% year-over-year, with positive trends in estimates [10][14] Price Performance - CPA has performed well in the stock market with an 18.1% year-to-date gain, while UPS has seen a decline in double digits [8] - UPS's weak price performance is attributed to revenue weakness due to geopolitical uncertainty and high inflation affecting consumer sentiment [11] Operational Efficiency - Copa Holdings maintains operating margins of over 20%, with expectations to end 2025 with an adjusted operating margin in the 21-23% range [13] - UPS's operational flexibility is hindered by its high dividend payout, limiting its ability to invest in growth [6] Valuation Comparison - CPA trades at a forward earnings multiple of 6.03 with a Value Score of A, while UPS has a forward earnings multiple of 13.28 and a Value Score of B [18] - The Zacks Consensus Estimate for UPS indicates a 4.1% year-over-year decrease in sales for 2025, contrasting with CPA's expected sales increases of 4.5% and 8.1% for 2025 and 2026, respectively [16][14] Conclusion - CPA's lower dividend payout ratio, better price performance, and positive earnings estimate revisions position it as a more favorable investment compared to UPS [20]
Is Central Japan Railway Co. (CJPRY) Stock Outpacing Its Transportation Peers This Year?
ZACKS· 2025-06-16 14:41
Company Overview - Central Japan Railway Co. (CJPRY) is currently ranked 13 in the Zacks Sector Rank within the Transportation group, which consists of 122 companies [2] - CJPRY has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook based on earnings estimates and revisions [3] Performance Metrics - Over the past 90 days, the Zacks Consensus Estimate for CJPRY's full-year earnings has increased by 9%, reflecting improved analyst sentiment [4] - Year-to-date, CJPRY has returned 14.1%, significantly outperforming the average return of -7.4% for Transportation companies [4] Industry Context - CJPRY is part of the Transportation - Rail industry, which includes 9 companies and is currently ranked 52 in the Zacks Industry Rank; this industry has gained about 2% year-to-date [6] - In contrast, Copa Holdings (CPA), another strong performer in the Transportation sector, has returned 18.1% year-to-date and belongs to the Transportation - Airline industry, which is ranked 41 and has declined by -10.7% this year [5][6] Investment Outlook - Both Central Japan Railway Co. and Copa Holdings are expected to continue their solid performance, making them noteworthy for investors interested in Transportation stocks [7]
Copa Holdings Announces Monthly Traffic Statistics for May 2025
Globenewswire· 2025-06-16 12:00
Group 1 - Copa Holdings reported a 7.0% increase in capacity (ASMs) for May 2025 compared to May 2024, reaching 2,655.2 million [1] - The system-wide passenger traffic (RPMs) increased by 7.5% in May 2025, totaling 2,327.2 million [1] - The load factor for May 2025 was 87.6%, which is 0.3 percentage points higher than the load factor in May 2024 [1] Group 2 - Copa Holdings is a leading provider of passenger and cargo services in Latin America, serving countries across North, Central, and South America, as well as the Caribbean [2]
Copa Holdings (CPA) Suffers a Larger Drop Than the General Market: Key Insights
ZACKS· 2025-06-13 23:16
Company Performance - Copa Holdings ended the recent trading session at $103.77, showing a -2.94% change from the previous day's closing price, which lagged behind the S&P 500's daily loss of 1.13% [1] - Prior to the recent trading, shares of Copa Holdings had gained 4.46%, outperforming the Transportation sector's loss of 0.07% and the S&P 500's gain of 3.55% [1] Earnings Estimates - The upcoming earnings release for Copa Holdings is anticipated to report an EPS of $3.33, reflecting a 15.63% increase compared to the same quarter of the previous year [2] - The consensus estimate projects revenue of $842.94 million, indicating a 2.87% rise from the equivalent quarter last year [2] - For the entire fiscal year, earnings are projected at $16.64 per share and revenue at $3.6 billion, representing changes of +14.29% and +4.51% respectively from the prior year [3] Analyst Estimates and Stock Ratings - Changes in analyst estimates for Copa Holdings are important as they reflect short-term business trends, with upward revisions indicating analysts' positivity towards the company's operations [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows that Copa Holdings currently holds a Zacks Rank of 1 (Strong Buy) [6] - Over the past month, the Zacks Consensus EPS estimate has increased by 1.93% [6] Valuation Metrics - Copa Holdings is trading at a Forward P/E ratio of 6.43, which is a discount compared to the industry average Forward P/E of 9.43 [7] - The company has a PEG ratio of 0.75, which is lower than the Transportation - Airline industry average PEG ratio of 0.89 [7] Industry Context - The Transportation - Airline industry has a Zacks Industry Rank of 51, placing it within the top 21% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]
Wall Street Analysts Think Copa Holdings (CPA) Could Surge 42.18%: Read This Before Placing a Bet
ZACKS· 2025-06-11 15:00
Group 1 - Copa Holdings (CPA) shares have increased by 5.4% over the past four weeks, closing at $107.42, with a mean price target of $152.73 indicating a potential upside of 42.2% [1] - The mean estimate consists of 11 short-term price targets with a standard deviation of $19.78, where the lowest estimate of $125 suggests a 16.4% increase, and the highest estimate of $190 indicates a 76.9% surge [2] - Analysts show a strong consensus that CPA will report better earnings than previously estimated, which is a positive indicator for potential stock upside [4][11] Group 2 - The Zacks Consensus Estimate for CPA has increased by 1.9% due to three upward revisions in earnings estimates over the last 30 days, with no negative revisions [12] - CPA holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential upside [13] - While price targets can be misleading, the direction indicated by the consensus price target may serve as a useful guide for potential price movements [10][11]