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Embraer S.A. (ERJ): Today's Featured Aerospace/Defense Loser

Embraer S.A ( ERJ) pushed the Aerospace/Defense industry lower today making it today's featured Aerospace/Defense loser. The industry as a whole closed the day down 0.4%. By the end of trading, Embraer S.A fell 48 cents (-1.9%) to $24.37 on average volume. Throughout the day, 973,229 shares of Embraer S.A exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $24.34-$25.45 after having opened the day at $24.68 as compared to the previous trading day's close of $24.85. Other company's within the Aerospace/Defense industry that declined today were: Astrotech ( ASTC), down 8.8%, Aerosonic Corporation ( AIM), down 6.7%, TAT Technologies ( TATT), down 5.6%, and LMI Aerospace Inc ( LMIA), down 3.5%.

Embraer S.A. engages in the development, production, and sale of jet and turboprop aircraft for civil and defense aviation markets. Embraer S.A has a market cap of $4.4 billion and is part of the industrial goods sector. The company has a P/E ratio of 13.1, equal to the average aerospace/defense industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 15.5% year to date as of the close of trading on Monday.

TheStreet Ratings rates Embraer as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

On the positive front, American Defense Systems Inc ( EAG), up 9.1%, Curtiss-Wright Corporation ( CW), up 3.6%, AerCap Holdings N.V ( AER), up 2.8%, and Moog Inc ( MOG.B), up 2.2%, were all gainers within the aerospace/defense industry with Northrop Grumman ( NOC) being today's featured aerospace/defense industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the aerospace/defense industry could consider iShares DJ US Aerospace & Def Idx ( ITA) while those bearish on the aerospace/defense industry could consider ProShares Short Dow 30 ( DOG).

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