Copa Holdings Underrated Stock

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Copa Holdings Underrated Stock

Copa Holdings - An Underrated Value Stock Or Not?

Copa Holdings (CPA) is available on the NY Stock Exchange and appears to show promising, solid growth in the near future. Does this mean the Copa Holdings is an underrated value stock? Before we look at it, it's best to understand the business of Copa Holdings.

The firm is one of the best airline operators in Latin America. It also has a pretty good valuation and strong fundamentals. Panama City is where Copa runs its business and also allows it to offer connections throughout America.

Copa Holdings Has Good Operational Performance

Their on-time rate is nearly 90.8% while their flight competition factor is 99.9%. This is a sign that Copa Holdings is a very strong company in terms of operational performance.

The load factors of Copa Holdings are nearly 86.4%, which is also very high. Meanwhile, their capacity has also increased by 9.5% y/y.

Copa only uses the Boeing 737 family as the sole aircraft type for its 112-plane fleet. This enables the airline to simplify its operations, training, maintenance, and other factors. The end result is that Copa saves big money on costs, which is an important factor in the airline business.

As far as valuation is concerned, Copa Holdings appears to be highly undervalued. Its P/E ratio is also near 6.1, which is much lower than its sector peers.

According to experts, the P/E ratio of Copa Holdings will fall even further in 2025, 2026, and 2027. Meanwhile, the earnings of the Copa Holdings will continue to grow.

When we combine such a low valuation along with a high dividend yield, it becomes clear that Copa Holdings is the underrated.

So, for those who are looking for a stock in the airlines business, Copa Holdings is definitely a good option. But, you will need to check if Copa Holdings is available in your brokerage account or not!

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