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 15 cents (-0.5%) to $29.42 on average volume. Throughout the day, 1.7 million shares of Embraer S.A exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $29.22-$29.74 after having opened the day at $29.28 as compared to the previous trading day's close of $29.57. Other company's within the Aerospace/Defense industry that declined today were: Aerosonic Corporation ( AIM), down 6.3%, LMI Aerospace ( LMIA), down 4.1%, AAR ( AIR), down 2.9%, and TAT Technologies ( TATT), down 2%.

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 $5.45 billion and is part of the industrial goods sector. The company has a P/E ratio of 49, below the average aerospace/defense industry P/E ratio of 77.1 and above the S&P 500 P/E ratio of 17.7. Shares are up 16.7% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Embraer S.A a buy, no analysts rate it a sell, and three 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 and largely solid financial position with reasonable debt levels by most measures. 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, Sifco Industries ( SIF), up 2.3%, TransDigm Group ( TDG), up 2.2%, Heico Corporation ( HEI), up 1.9%, and Triumph Group ( TGI), up 1.6%, were all gainers within the aerospace/defense industry with Spirit AeroSystems Holdings ( SPR) 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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