Empresa Brasileira de Aeronautica S.A.

Empresa Brasileira de Aeronáutica (ERJ - Analyst Report) is expanding in Latin America as estimates are climbing. The market has created a steep discount for the jet maker's growth rates.

Company Description

Empresa Brasileira de Aeronautica S.A, or Embraer, formed by the Brazilian government in 1960 and privatized in 1994, designs, manufactures and sells aircraft and aviation-related structural parts to the world s commercial aviation and defense markets. Embraer is the fourth largest commercial aircraft manufacturer in the world. The company operates through four segments; Service Aviation, Defense and Government, Corporate Aviation, and Executive Aviation.

Embraer is headquartered in Brazil, employs approximately 24,000 people, and carries a market cap of $3.7 billion.

Long-Term Growth Soaring

Earnings estimates for next year are averaging $3.49 per share, which will be good enough for a 26% increase. The most recent estimate came in well over the consensus for the current quarter, current year, and next year. The average upside for the estimates is 22% above the average.

Attractively Priced

Like the rest of the market, Embraer has had a tough year, but on the bright side the growth prospects are at a fantastic price. The current PEG ratio for Embraer is 0.5.

Expanding Presence in Latin America

Embraer named Veserca and Aerotecnica as an authorized sales representative and services center, respectively, on Oct 7. The partnerships will bring added value to the company's Venezuelan customers as Embraer seeks to expand in Latin America.

The Chart

Shares of ERJ have been selling off hard the past couple weeks and there isn't a bullish story in the chart. The stock is trading at multiple year lows, but could present a great long-term value as long if you can stomach the nose dive without reaching for a barf bag. Take a look at the chart below.