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Embraer (ERJ) Gains As Market Dips: What You Should Know
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In the latest trading session, Embraer (ERJ - Free Report) closed at $10.54, marking a +1.84% move from the previous day. This move outpaced the S&P 500's daily loss of 1.06%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Coming into today, shares of the plane and jet manufacturer had gained 6.92% in the past month. In that same time, the Aerospace sector gained 16.01%, while the S&P 500 gained 4.94%.
Investors will be hoping for strength from Embraer as it approaches its next earnings release, which is expected to be November 11, 2022. In that report, analysts expect Embraer to post earnings of $0.15 per share. This would mark year-over-year growth of 183.33%. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 24.75% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.54 per share and revenue of $4.72 billion, which would represent changes of +460% and +12.48%, respectively, from the prior year.
Any recent changes to analyst estimates for Embraer should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Embraer is currently a Zacks Rank #2 (Buy).
Digging into valuation, Embraer currently has a Forward P/E ratio of 19.03. Its industry sports an average Forward P/E of 19.65, so we one might conclude that Embraer is trading at a discount comparatively.
Meanwhile, ERJ's PEG ratio is currently 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 133, putting it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ERJ in the coming trading sessions, be sure to utilize Zacks.com.
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Embraer (ERJ) Gains As Market Dips: What You Should Know
In the latest trading session, Embraer (ERJ - Free Report) closed at $10.54, marking a +1.84% move from the previous day. This move outpaced the S&P 500's daily loss of 1.06%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Coming into today, shares of the plane and jet manufacturer had gained 6.92% in the past month. In that same time, the Aerospace sector gained 16.01%, while the S&P 500 gained 4.94%.
Investors will be hoping for strength from Embraer as it approaches its next earnings release, which is expected to be November 11, 2022. In that report, analysts expect Embraer to post earnings of $0.15 per share. This would mark year-over-year growth of 183.33%. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 24.75% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.54 per share and revenue of $4.72 billion, which would represent changes of +460% and +12.48%, respectively, from the prior year.
Any recent changes to analyst estimates for Embraer should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Embraer is currently a Zacks Rank #2 (Buy).
Digging into valuation, Embraer currently has a Forward P/E ratio of 19.03. Its industry sports an average Forward P/E of 19.65, so we one might conclude that Embraer is trading at a discount comparatively.
Meanwhile, ERJ's PEG ratio is currently 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 133, putting it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ERJ in the coming trading sessions, be sure to utilize Zacks.com.