Copa Holdings: Zacks’ Bear of the Day Play

Copa Holdings (CPASnapshot Report) is seeing earnings estimate slide despite having beaten the Zacks Consensus Estimate in each of the last six quarters. It is a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day.

Description

Copa Holdings provides airline passenger and cargo services in Latin America. It offers services within Colombia; and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mxico, Cuba, Guatemala, and Costa Rica. Copa Holdings was founded in 1947 and is based in Panama City, Panama.

Good Earnings History

CPA has beaten the Zacks Consensus Estimate in each of the last 6 quarters. The problem has been that in four of the last five quarters, the company has missed on the topline too. Missing on top and beating the bottom line is not something we see all the time. Let’s take a look at how the analysts interpret this via the full year earnings estimates.

Earnings Estimates

Estimates saw a small bump higher at the start of the year, but have since reversed course and look like they are coming in for a landing.

The 2015 Zacks Consensus Estimate started the year at $9.01 and then kicked higher to $9.32 the following month. This would be the last time the estimate would see an increase in altitude. From taht point on, it has fallen and now looks to level off around $7.59

The 2016 Zacks Consensus Estimate slipped from a high of $10.46 to $8.61, so analysts are not to sure the skies are than friendly of a place.

Chart

Zacks has developed a chart that helps investors see how earnings estimates have impacted the price of the stock over the last several years. We call this chart the price and consensus chart, and each color coded lines represent analyst estimates over a designated year. As estimates increase, the stock tends to follow. The Zacks Rank is impacted by earnings estimate increases, beats and incorporates the idea of analyst agreement and magnitude. As a Zacks Rank #5 (Strong Sell) we see that estimates are moving lower.

Follow Brian Bolan on twitter at @BBolan1

Brian Bolan is a Stock Strategist for Zacks.com. He is the Editor in charge of the Zacks Home Run Investor service, a Buy and Hold service where he recommends the stocks in the portfolio.

He also run the new Stocks Under $10 Investor service where he looks for low priced stocks that are seeing positive earnings estimate revisions. This popular service has seen some strong early returns and offers a free trial via the Zacks Investor Collection program that includes Home Run Investor, Value Investor and Income Plus.

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