Copa Holdings Up 22.6% YTD: Is the Stock Still Worth Betting on Now?

Core Viewpoint - Copa Holdings (CPA) has shown strong performance in the stock market, gaining 22.6% year-to-date, outperforming both the Zacks Transportation - Airline industry and U.S. peers like United Airlines (UAL) and Delta Air Lines (DAL) [1][6]. Group 1: Stock Performance and Valuation - CPA's stock is currently trading at a forward earnings multiple of 6.28, significantly lower than the industry average of 11.12, indicating strong valuation appeal [6][12]. - The stock has a Momentum Score of A, with technical indicators suggesting continued strong performance, trading above its 50-day moving average [4][5]. Group 2: Growth Prospects - The company forecasts a capacity growth of 7-8% and an operating margin of 21-23% for 2025, reflecting optimism in its operational capabilities [6][8]. - Zacks Consensus Estimates predict a year-over-year sales increase of 4.5% for 2025 and 8.1% for 2026, with EPS estimates showing a 14.3% increase for 2025 and 7.5% for 2026 [11]. Group 3: Financial Health and Shareholder Returns - Copa Holdings has a strong liquidity position, ending the first quarter of 2025 with cash and cash equivalents of $916.3 million, well above its current debt level of $232.4 million [10]. - The company maintains a shareholder-friendly approach, offering a quarterly dividend of $1.61 per share, which is attractive for income-seeking investors [10]. Group 4: Market Position and Competitive Advantage - Copa Holdings has outperformed U.S. counterparts in air travel demand due to regional economic expansion and effective market strategies [9]. - The airline has consistently beaten earnings estimates, with an average surprise of 5.5% over the last four quarters, showcasing its resilience [9].