Copa Holdings (CPA) is a Top-Ranked Value Stock: Should You Buy?

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score indicating a better chance of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score targets value investors by identifying stocks trading below their true value using various financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score focuses on a company's future prospects, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth potential [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing factors like short-term price changes and earnings estimate revisions to identify optimal entry points [5] VGM Score - The VGM Score combines the three Style Scores to provide a comprehensive rating, helping investors find stocks with attractive value, strong growth forecasts, and positive momentum [6] Zacks Rank Integration - The Zacks Rank, a proprietary stock-rating model, uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for the highest likelihood of success [9] Stock Example: Copa Holdings - Copa Holdings, based in Panama City, operates Copa Airlines and Copa Colombia, and currently holds a 3 (Hold) rating on the Zacks Rank with a VGM Score of A [11] - The company has a Value Style Score of A, supported by a forward P/E ratio of 6.33, making it attractive for value investors [12] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate of $15.48 per share for fiscal 2025, along with an average earnings surprise of 9.2%, position Copa Holdings favorably for investors [12]