Why Copa Holdings (CPA) is a Top Growth Stock for the Long-Term

Core Insights - Zacks Premium provides various tools to help investors make informed decisions and invest confidently in the stock market [1][2] Zacks Style Scores - The Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - Stocks with higher Style Scores have better chances of outperforming the market, with A being the highest score [3] Categories of Style Scores - Value Score: Identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [4] - Growth Score: Focuses on a company's future prospects and financial health, analyzing earnings, sales, and cash flow [5] - Momentum Score: Targets trends in stock prices and earnings outlooks, using factors like price changes and earnings estimate changes [6] - VGM Score: A comprehensive score combining all three Style Scores, helping to identify stocks with the best value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.86% since 1988, outperforming the S&P 500 [8] - There can be over 800 top-rated stocks at any time, making it essential to use Style Scores to narrow down choices [9] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks but high Style Scores may still face downward earnings trends, increasing the risk of price declines [11] Company Spotlight: Copa Holdings - Copa Holdings, based in Panama City, operates Copa Airlines and Copa Colombia, providing passenger and cargo services [12] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, making it a strong candidate for growth investors [12] - Copa Holdings is projected to have a year-over-year earnings growth of 13% for the current fiscal year, with upward revisions in earnings estimates [13]