Copa Holdings SA (CPA): Today's Featured Transportation Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Copa Holdings ( CPA) pushed the Transportation industry higher today making it today's featured transportation winner. The industry as a whole was unchanged today. By the end of trading, Copa Holdings rose $2.55 (2.4%) to $109.60 on average volume. Throughout the day, 315,673 shares of Copa Holdings exchanged hands as compared to its average daily volume of 360,400 shares. The stock ranged in a price between $106.67-$109.93 after having opened the day at $106.67 as compared to the previous trading day's close of $107.05. Other companies within the Transportation industry that increased today were: TOP Ships ( TOPS), up 8.3%, Kirby ( KEX), up 6.3%, Scorpio Tankers ( STNG), up 5%, and Roadrunner Transportation Systems ( RRTS), up 4.4%.
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Copa Holdings, S.A., through its subsidiaries, provides airline passenger and cargo services. The company offers air transportation services for leisure and business travelers; and cargo and courier services. Copa Holdings has a market cap of $3.57 billion and is part of the services sector. The company has a P/E ratio of 15.1, below the S&P 500 P/E ratio of 17.7. Shares are up 8.6% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate Copa Holdings a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Copa Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, USA Truck ( USAK), down 10.2%, DS Torm ( TRMD), down 7.9%, Genco Shipping & Trading ( GNK), down 6.7%, and Golar LNG Partners ( GMLP), down 5%, were all laggards within the transportation industry with United Parcel Service Inc (UPS) Class B ( UPS) being today's transportation industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).

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