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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 up 0.6%. By the end of trading, Embraer S.A fell $0.93 (-2.7%) to $33.02 on average volume. Throughout the day, 1,550,461 shares of Embraer S.A exchanged hands as compared to its average daily volume of 1,113,000 shares. The stock ranged in price between $32.87-$33.81 after having opened the day at $33.81 as compared to the previous trading day's close of $33.95. Other companies within the Aerospace/Defense industry that declined today were: Ducommun ( DCO), down 4.1%, Innovative Solutions and Support ( ISSC), down 2.6% and DigitalGlobe ( DGI), down 2.2%.

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 $6.5 billion and is part of the industrial goods sector. Shares are up 25.1% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate Embraer S.A a buy, no analysts rate it a sell, and 6 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 good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins.

On the positive front, LMI Aerospace ( LMIA), up 10.6%, Air Industries Group ( AIRI), up 6.2%, TAT Technologies ( TATT), up 2.7% and Smith & Wesson Holding Corporation ( SWHC), up 2.2% , were all gainers within the aerospace/defense industry with Boeing ( BA) being today's featured aerospace/defense industry leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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