Shares of Copa Holdings SA CPA lost 2.1% value and touched a 52-week low of $81.20 yesterday, finally ending the trading session at $81.48. Over the last month, shares of the company have lost nearly 4.3%.
The price decline was largely the result of adverse foreign currency movements characterized by the strengthening of the U.S. dollar against Brazilian real. Furthermore, the 2015 projection by the International Air Transport Association (IATA) paints a gloomy picture for Latin American carriers. According to the forecast, these carriers will account for only $600 million of the $29.3 billion global net profit projected by IATA.
Moreover, Copa Airlines, the business arm of Copa Holdings, reported deterioration in the load factor or percentage of seats filled by passengers in the month of May. The figure fell to 74.1% from 77.9% in May 2014.
In addition, stiff competition from the likes of LATAM Airlines, Azul Brazilian Airlines and GOL Linhas – which largely dominate the Brazilian aviation space – may continue to mar revenues for Copa Holdings.
Meanwhile, over the past 60 days, the company witnessed downward estimate revisions for both the current quarter and year. Estimates for the quarter have moved down to $1.27 from $1.98 whereas the same for the year fell 17.2% to $7.59.
Copa Holdings currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Better-ranked stocks in the same space include Deutsche Lufthansa Aktiengesellschaft DLAKY, SkyWest Inc. SKYW and Cathay Pacific Airways Limited CPCAY. All three sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment