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 0.5%. By the end of trading, Embraer S.A fell 81 cents (-2.5%) to $31.69 on heavy volume. Throughout the day, two million 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 $31.63-$32.55 after having opened the day at $32.32 as compared to the previous trading day's close of $32.50. Other company's within the Aerospace/Defense industry that declined today were: Astrotech Corporation ( ASTC), down 3.1%, Aerosonic Corporation ( AIM), down 2.7%, Erickson Air-Crane ( EAC), down 2.3%, and AAR ( AIR), down 2.1%.

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 $6.04 billion and is part of the industrial goods sector. The company has a P/E ratio of 54.4, below the average aerospace/defense industry P/E ratio of 85.5 and above the S&P 500 P/E ratio of 17.7. Shares are up 29.4% year to date as of the close of trading on Thursday. Currently there are six analysts that rate Embraer S.A a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Embraer S.A as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

On the positive front, Smith & Wesson Holding Corporation ( SWHC), up 3.9% and Esterline Technologies ( ESL), up 1.7%, were all gainers within the aerospace/defense industry with Triumph Group ( TGI) 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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