Many stocks have been testing new highs in 2020, and one of the most notable is Copa Holdings S.A. (CPA). Currently, CPA is trading at $61.39 and the avg recommendation for the stock is Strong Buy. while the current analyst price target stands at $74.56.
To add more color to this target, the company’s high over the last year is $116.88 and the low is $24.00. Over the last 52 weeks, CPA is down -47.48% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, CPA reported a profit of $409.46 million. Copa Holdings S.A. also saw revenues increase to $595.45 million. In addition, CPA has free cash flow of $106.34 million as of 03-2020 The company’s EBITDA came in at $98.69 million which compares well with its peers.
CPA booked profit margins of 8.80%, its Return on Equity (ROE) is 11.90%, and its Return on Assets is 5.20%. All told, it is clear that, CPA needs to be on your watchlist.
About Copa Holdings S.A.
If readers are unfamiliar, Copa Holdings, S.A., through its subsidiaries, provides airline passenger and cargo services. The company offers flights to 80 destinations in 33 countries in North, Central, and South America, as well as the Caribbean. As of December 31, 2019, it operated a fleet of 102 aircraft comprising 82 Boeing 737-Next Generation, 14 Embraer 190, and six Boeing 737 MAX 9 aircraft. Copa Holdings, S.A. was founded in 1947 and is based in Panama City, Panama.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CPA has a short ratio of 4.09 and outstanding shares of 42.50M.
CPA has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.13 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 5.46. Copa Holdings S.A. CPA also noted assets of $4.39 billion at the end of the last quarter. Investors should also keep an eye on sector updates as CPA has historically followed its peers on positive news.
All told, Copa Holdings S.A. CPA has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CPA represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Copa Holdings S.A. CPA is now commanding a market cap of 2.47B and a float of 31.27M. CPA is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CPA stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in CPA, either long or short, and we have not been compensated for this article.