Summary
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Embraer S.A. (ERJ) has shown a 35% gain since a Trend Seeker buy signal on 1/15, driven by strong technical indicators.
The Barchart Brief: Your FREE insider update on the biggest news stories and investing trends, delivered midday The company operates in multiple segments including Commercial Aviation, Defense & Security, and Executive Aviation, with a global presence.
Barchart's technical indicators show 100% buy signals, a 139.50% gain in the last year, and the stock is above key moving averages.
Analysts are mixed with 6 strong buys, 5 buys, 2 holds, and 1 sell; revenue is expected to grow significantly this year and next year too.
The Chart of the Day belongs to the Brazilian aircraft company Embraer-Empresa Brasileira DE Aeronautica (ERJ). I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 1/15 the stock gained 35.00%.
ERJ Price vs Daily Moving Averages:
ERJ (Barchart)
Embraer S.A., together with its subsidiaries, designs, develops, manufactures, and sells aircraft and systems in North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally. It operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment develops, produces, and sells commercial jets. Its Defense & Security segment develops and produces military aircraft and radars; and is involved in research and development of software and integrated information systems, communications, border monitoring and surveillance, space systems/satellites, and aircraft modernization services and services support, as well as command, control, communications, computer, intelligence, surveillance, and reconnaissance systems. The Executive Aviation segment develops, produces, and sells executive jets. Its Service & Support segment provides field and technical support, flight operations solutions, aircraft modification, materials management, maintenance solutions, and training programs. The Other segment engages in the supply of structural parts and hydraulic systems; production of agricultural crop-spraying aircraft; development and certification of eVTOLs; creation of a maintenance and service network, and air traffic control system for eVTOLs; development and manufacture of electrical propulsion systems; cybersecurity; and software and technical products. It is also involved in leasing used aircraft; pilot, mechanic, and crew training; engineering services; retail trade, maintenance, and repair of computer products; information technology consulting, data processing, application service providers, and internet hosting; and fabrication of aircraft interiors. The company was formerly known as Embraer-Empresa Brasileira de Aeronáutica S.A. and changed its name to Embraer S.A. in November 2010. Embraer S.A. was incorporated in 1969 and is headquartered in São Paulo, Brazil.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 148.81+ Weighted Alpha
- 139.50% gain in the last year
- 1.70 - 60 month Beta
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 5 new highs and up 15.97% in the last month
- Relative Strength Index 75.11%
- Technical support level at $50.94
- Recently traded at $51.87 with 50 day moving average of $41.22
Fundamental Factors:
- Market Cap $9.71 billion
- P/E 19.87
- Revenue expected to grow 20.74% this year and another 13.24% next year
- Earnings estimated to decrease 23.60% this year and but increase again an additional 21.38% next year
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts issued 6 strong buy, 5 buy, 2 hold and 1 sell opinion on the stock with price targets between $35 and $65
- Value Line rates the stock above average and comments:" Prospects for continued growth in the years ahead remain favorable. Now that the company’s turnaround has been completed, management is focused on expansion projects."
- CFRAs MarketScope rates the stock a hold with a price target of $47
- MorningStar thinks the stock is 33% over valued
- Of the 1,560 investors following the stock on Motley Fool 1.439 think the stock will beat the market and 121 think it won't
- 11,230 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
