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 0.1%. By the end of trading, Embraer S.A fell 26 cents (-0.9%) to $28.20 on average volume. Throughout the day, 1.2 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 $28.09-$28.43 after having opened the day at $28.33 as compared to the previous trading day's close of $28.46. Other company's within the Aerospace/Defense industry that declined today were: Edac Technologies Corporation ( EDAC), down 4.7%, AAR ( AIR), down 3.3%, LMI Aerospace ( LMIA), down 2.3%, and Astronics Corporation ( ATRO), down 1.8%.

Embraer S.A. develops, produces, and sells jet and turboprop aircrafts for civil and defense aviation markets. Embraer S.A has a market cap of $5.38 billion and is part of the industrial goods sector. The company has a P/E ratio of 48.5, below the average aerospace/defense industry P/E ratio of 76.2 and above the S&P 500 P/E ratio of 17.7. Shares are up 15.3% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate Embraer S.A a buy, no analysts rate it a sell, and two 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, Heico Corporation ( HEI.A), up 5.1%, Astrotech Corporation ( ASTC), up 3.9%, Aerosonic Corporation ( AIM), up 3.8%, and Ducommun ( DCO), up 3.7%, were all gainers within the aerospace/defense industry with L-3 Communications Holdings ( LLL) 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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