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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Embraer S.A ( ERJ) pushed the Aerospace/Defense industry higher today making it today's featured aerospace/defense winner. The industry as a whole closed the day up 0.2%. By the end of trading, Embraer S.A rose $0.88 (2.4%) to $37.61 on average volume. Throughout the day, 1,352,434 shares of Embraer S.A exchanged hands as compared to its average daily volume of 1,047,700 shares. The stock ranged in a price between $37.60-$38.40 after having opened the day at $38.20 as compared to the previous trading day's close of $36.73. Other companies within the Aerospace/Defense industry that increased today were: Frontline ( FRO), up 11.8%, Ducommun ( DCO), up 5.5%, Astronics Corporation ( ATRO), up 2.6% and TAT Technologies ( TATT), up 2.5%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Embraer S.A. primarily develops, produces, and sells jet and turboprop aircrafts for civil and defense aviation markets in Brazil, North America, Latin America, the Asia Pacific, Europe, and internationally. Embraer S.A has a market cap of $6.8 billion and is part of the industrial goods sector. The company has a P/E ratio of 19.4, above the S&P 500 P/E ratio of 17.7. Shares are up 28.8% year to date as of the close of trading on Monday. Currently there are 5 analysts that rate Embraer S.A a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Embraer S.A as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Sifco Industries ( SIF), down 4.7%, Taser International ( TASR), down 3.3%, Astrotech Corporation ( ASTC), down 2.6% and LMI Aerospace ( LMIA), down 2.4% , were all laggards within the aerospace/defense industry with FLIR Systems ( FLIR) being today's aerospace/defense industry laggard.

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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null

If you liked this article you might like

There's Still Time to Buy These 5 Breakout Trades

Spirit CEO Hails Aircraft Maker Competition, Will Look at Bombardier CS-100

Bullish and Bearish Reversals for the Week

These 5 Stocks Are Breaking Out

Embraer (ERJ) Weak On High Volume Today