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 up 0.7%. By the end of trading, Embraer S.A fell 32 cents (-1.2%) to $27.37 on light volume. Throughout the day, 807,988 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 $27.18-$27.49 after having opened the day at $27.28 as compared to the previous trading day's close of $27.69. Other company's within the Aerospace/Defense industry that declined today were: CPI Aerostructures ( CVU), down 5.1%, Ducommun ( DCO), down 2.8%, and Astrotech Corporation ( ASTC), 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 $5.16 billion and is part of the industrial goods sector. The company has a P/E ratio of 46.5, below the average aerospace/defense industry P/E ratio of 73 and above the S&P 500 P/E ratio of 17.7. Shares are up 7.8% year to date as of the close of trading on Thursday. 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, Aerosonic Corporation ( AIM), up 6.1%, Breeze-Eastern Corporation ( BZC), up 4.3%, Smith & Wesson Holding Corporation ( SWHC), up 4.2%, and Edac Technologies Corporation ( EDAC), up 3.7%, 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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