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Embraer (ERJ) Gains But Lags Market: What You Should Know
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In the latest trading session, Embraer (ERJ - Free Report) closed at $9.86, marking a +1.65% move from the previous day. This change lagged the S&P 500's 2.46% gain on the day. Meanwhile, the Dow gained 2.59%, and the Nasdaq, a tech-heavy index, lost 0.23%.
Coming into today, shares of the plane and jet manufacturer had gained 8.87% in the past month. In that same time, the Aerospace sector gained 12.77%, while the S&P 500 gained 4.56%.
Embraer will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.15, up 183.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.2 billion, up 24.75% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.54 per share and revenue of $4.72 billion. These totals would mark changes of +460% and +12.48%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Embraer. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Embraer currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Embraer is currently trading at a Forward P/E ratio of 17.83. This valuation marks a discount compared to its industry's average Forward P/E of 19.61.
Also, we should mention that ERJ has a PEG ratio of 1.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense was holding an average PEG ratio of 2 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Embraer (ERJ) Gains But Lags Market: What You Should Know
In the latest trading session, Embraer (ERJ - Free Report) closed at $9.86, marking a +1.65% move from the previous day. This change lagged the S&P 500's 2.46% gain on the day. Meanwhile, the Dow gained 2.59%, and the Nasdaq, a tech-heavy index, lost 0.23%.
Coming into today, shares of the plane and jet manufacturer had gained 8.87% in the past month. In that same time, the Aerospace sector gained 12.77%, while the S&P 500 gained 4.56%.
Embraer will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.15, up 183.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.2 billion, up 24.75% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.54 per share and revenue of $4.72 billion. These totals would mark changes of +460% and +12.48%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Embraer. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Embraer currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Embraer is currently trading at a Forward P/E ratio of 17.83. This valuation marks a discount compared to its industry's average Forward P/E of 19.61.
Also, we should mention that ERJ has a PEG ratio of 1.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense was holding an average PEG ratio of 2 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.