Copa Dinged By Some Macro And Competitive Worries, But Still Operationally In Good Shape

Although a well-run company, Copa Holdings (CPA) is the sort of stock that's more likely than not to give investors multiple second chances. Between exposure to a host of Latin American economies, oil prices, and the often irrationally competitive airline industry, even a well-run airline like Copa is going to have its challenges. And so, it seems to be now, as the shares have slid about 15% from the time of my last article and underperformed over the past year or so due to worries about increasing low-cost competition, increasing oil prices, and issues related to Venezuela.

Copa is never going to be a "safe stock", but the combination of growing demand, growing capacity and pricing, and good cost control seem like one that should work well. With that, I think this is a name to consider for investors who can stomach the elevated risk and volatility.

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Copa Dinged By Some Macro And Competitive Worries, But Still Operationally In Good Shape