Embraer (ERJ) closed at $10.65 in the latest trading session, marking a +1.53% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.15%.
Heading into today, shares of the plane and jet manufacturer had lost 6.17% over the past month, outpacing the Aerospace sector's loss of 7.16% and the S&P 500's loss of 10.24% in that time.
Embraer will be looking to display strength as it nears its next earnings release. In that report, analysts expect Embraer to post earnings of $0.16 per share. This would mark year-over-year growth of 188.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.2 billion, up 24.75% from the year-ago period.
ERJ's full-year Zacks Consensus Estimates are calling for earnings of $0.54 per share and revenue of $4.72 billion. These results would represent year-over-year changes of +460% and +12.48%, respectively.
Investors might also notice recent changes to analyst estimates for Embraer. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 58.83% higher. Embraer currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Embraer's current valuation metrics, including its Forward P/E ratio of 19.28. Its industry sports an average Forward P/E of 17.7, so we one might conclude that Embraer is trading at a premium comparatively.
Investors should also note that ERJ has a PEG ratio of 1.13 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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EmbraerEmpresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report
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