Copa Holdings SA (CPA): Today's Favorite Transportation Gainer

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 closed the day down 0.3%. By the end of trading, Copa Holdings rose $3.13 (2.8%) to $116.64 on average volume. Throughout the day, 348,457 shares of Copa Holdings exchanged hands as compared to its average daily volume of 362,700 shares. The stock ranged in a price between $113.46-$117.91 after having opened the day at $113.46 as compared to the previous trading day's close of $113.51. Other companies within the Transportation industry that increased today were: Era Group ( ERA), up 22.2%, YRC Worldwide ( YRCW), up 8.7%, TOP Ships ( TOPS), up 7.7%, and Radiant Logistics ( RLGT), up 5%.
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Copa Holdings, S.A., through its subsidiaries, engages in the air transportation of passengers, cargo, and mail in Latin America. As of January 22, 2013, it operated a fleet of 83 aircrafts, including 57 Boeing 737NG aircrafts and 26 EMBRAER-190s. Copa Holdings has a market cap of $3.72 billion and is part of the services sector. The company has a P/E ratio of 14.7, below the S&P 500 P/E ratio of 17.7. Shares are up 14.1% year to date as of the close of trading on Thursday. Currently there are five analysts that rate Copa Holdings a buy, no analysts rate it a sell, and four 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, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, DS Torm ( TRMD), down 20.3%, P.A.M. Transportation ( PTSI), down 7.5%, Genco Shipping & Trading ( GNK), down 5.8%, and Paragon Shipping ( PRGN), down 4.4%, were all laggards within the transportation industry with CH Robinson Worldwide ( CHRW) 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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