3 Stocks Pushing The Industrial Goods Sector Lower

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The Industrial Goods sector as a whole closed the day down 0.4% versus the S&P 500, which was down 0.9%. Laggards within the Industrial Goods sector included Global-Tech Advanced Innovations ( GAI), down 5.8%, Art's-Way Manufacturing ( ARTW), down 2.6%, Lime Energy ( LIME), down 1.9%, Tel Instrument Electronics ( TIK), down 2.0% and Asia Pacific Wire & Cable ( APWC), down 3.6%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today:

Embraer S.A ( ERJ) is one of the companies that pushed the Industrial Goods sector lower today. Embraer S.A was down $1.19 (3.1%) to $37.13 on average volume. Throughout the day, 1,209,940 shares of Embraer S.A exchanged hands as compared to its average daily volume of 863,400 shares. The stock ranged in price between $36.97-$38.24 after having opened the day at $38.20 as compared to the previous trading day's close of $38.32.

Embraer S.A. 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 $7.1 billion and is part of the aerospace/defense industry. Shares are up 19.1% year-to-date as of the close of trading on Monday. Currently there are 5 analysts who rate Embraer S.A a buy, no analysts rate it a sell, and 4 rate it a hold.

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TheStreet Ratings rates Embraer S.A as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, compelling growth in net income, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on ERJ go as follows:

  • The revenue growth came in higher than the industry average of 0.8%. Since the same quarter one year prior, revenues rose by 14.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 268.7% when compared to the same quarter one year prior, rising from $30.00 million to $110.60 million.
  • Net operating cash flow has increased to -$300.40 million or 18.72% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -24.85%.
  • EMBRAER SA reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EMBRAER SA reported lower earnings of $1.86 versus $1.92 in the prior year. This year, the market expects an improvement in earnings ($2.55 versus $1.86).

You can view the full analysis from the report here: Embraer S.A Ratings Report

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