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

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 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 $1.59 (4.7%) to $35.72 on heavy volume. Throughout the day, 2,570,869 shares of Embraer S.A exchanged hands as compared to its average daily volume of 1,067,800 shares. The stock ranged in a price between $35.25-$36.00 after having opened the day at $35.28 as compared to the previous trading day's close of $34.13. Other companies within the Aerospace/Defense industry that increased today were: Heico Corporation ( HEI), up 7.6%, Heico Corporation ( HEI.A), up 6.1%, Micronet Enertec Technologies ( MICT), up 5.5% and LMI Aerospace ( LMIA), up 3.7%.

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 $6.2 billion and is part of the industrial goods sector. Shares are up 5.9% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Embraer S.A a buy, no analysts rate it a sell, and 4 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, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and relatively poor performance when compared with the S&P 500 during the past year.

On the negative front, DigitalGlobe ( DGI), down 27.3%, Sturm Ruger & Company ( RGR), down 7.9%, Smith & Wesson Holding Corporation ( SWHC), down 5.8% and Air Industries Group ( AIRI), down 2.4%.

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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