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

Embraer S.A ( ERJ) pushed the Aerospace/Defense industry lower today making it today's featured Aerospace/Defense laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Embraer S.A fell $0.63 (-1.7%) to $36.89 on average volume. Throughout the day, 1,307,323 shares of Embraer S.A exchanged hands as compared to its average daily volume of 1,063,000 shares. The stock ranged in price between $36.59-$37.66 after having opened the day at $36.61 as compared to the previous trading day's close of $37.52. Other companies within the Aerospace/Defense industry that declined today were: Innovative Solutions and Support ( ISSC), down 4.8% and Hexcel Corporation ( HXL), down 2.4%.

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 $6.7 billion and is part of the industrial goods sector. The company has a P/E ratio of 18.6, above the S&P 500 P/E ratio of 17.7. Shares are up 31.6% year to date as of the close of trading on Thursday. 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 solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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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