Yahoo Finance Here's Why Embraer (ERJ) is a Strong Momentum Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Is This 1 Momentum Stock a Screaming Buy Right Now?
For momentum investors, upward or downward trends in a stock's price or earnings outlook take precedent, so they'll want to zero in on the Momentum Style Score. This Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
Embraer (ERJ)
Embraer S.A., formerly known as Empresa Brasileira de Aeronautica S.A., was formed by the Brazilian government in 1960 and privatized in 1994. The company, based in Sao Paulo, Brazil, designs, manufactures and sells aircraft and aviation-related structural parts to the world’s commercial aviation, executive aviation and defense markets. It is one of the leaders in the commercial aircraft space, with a seating capacity of up to 150, and delivered more than 8000 jets. The company operates through five segments. These are as follows:
ERJ boasts a Momentum Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Embraer has seen some interesting price action recently; the stock is up 3.4% over the past one week and up 9% over the past four weeks. And in the last one-year period, ERJ has gained 132.1%. As for the stock's trading volume, 1,396,676.25 shares on average were traded over the last 20 days.
A company's earnings performance is important for momentum investors as well. For fiscal 2024, one analyst revised their earnings estimate higher in the last 60 days for ERJ, while the Zacks Consensus Estimate has increased $0.25 to $1.56 per share. ERJ also boasts an average earnings surprise of 52.3%.
With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding ERJ to their portfolios.
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Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report
