Here's Why Embraer (ERJ) is a Strong Momentum Stock

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

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 produced 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 down 5.2% over the past one week and up 2% over the past four weeks. And in the last one-year period, ERJ has gained 38.5%. As for the stock's trading volume, 1,368,668.38 shares on average were traded over the last 20 days.

Momentum investors also pay close attention to a company's earnings. For ERJ, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.19 to $1.06 per share for 2023. ERJ boasts an average earnings surprise of 105.3%.

ERJ should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.

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Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report

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