There is no doubt that Embraer S.A. (ERJ) ticks all the boxes.

Embraer S.A. (NYSE: ERJ) stock jumped 3.73% on Tuesday to $13.06 against a previous-day closing price of $12.59. With 1.56 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.46 million shares. During the session, the Aerospace & Defense company that operates in wider Industrials sector, reached to the highest price of $13.08 whereas the lowest price it dropped to was $12.75. The 52-week range on ERJ shows that it touched its highest point at $16.07 and its lowest point at $7.91 during that stretch. It currently has a 1-year price target of $18.56. Beta for the stock currently stands at 1.19.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ERJ was up-trending over the past week, with a rise of 1.71%, but this was up by 20.37% over a month. Three-month performance surged to 34.78% while six-month performance rose 48.75%. The stock lost -12.82% in the past year, while it has gained 19.49% so far this year. A look at the trailing 12-month EPS for ERJ yields -1.12 with Next year EPS estimates of 0.69. For the next quarter, that number is 0.39. This implies an EPS growth rate of 92.40% for this year and 50.00% for next year. EPS is expected to grow by 17.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -19.80%.

Float and Shares Shorts:

At present, 183.66 million ERJ shares are outstanding with a float of 175.18 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.75 million, which was 2.59% higher than short shares on Sep 14, 2022. In addition to Mr. Francisco Gomes Neto as the firm’s Pres & CEO, Mr. Antonio Carlos Garcia serves as its CFO, Exec. VP & Head of Investor Relations.

Institutional Ownership:

Through their ownership of 38.50% of ERJ’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 28.08% of ERJ, in contrast to 10.22% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in ERJ with 9.80% of the stake, Brandes Investment Partners LP holds 18,146,444 shares worth 18,146,444. A second-largest stockholder of ERJ, Becker Capital Management, Inc., holds 3,369,215 shares, controlling over 1.82% of the firm’s shares. IPG Investment Advisors LLC is the third largest shareholder in ERJ, holding 3,064,799 shares or 1.66% stake. With a 1.08% stake in ERJ, the Brandes Emerging Markets Value Fu is the largest stakeholder. A total of 1,993,023 shares are owned by the mutual fund manager. The Fidelity Series Large Cap Stock F, which owns about 0.95% of ERJ stock, is the second-largest Mutual Fund holder. It holds 1,749,000 shares valued at 19.12 million. American Century Emerging Markets holds 0.84% of the stake in ERJ, owning 1,545,562 shares worth 16.89 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ERJ since 16 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ERJ analysts setting a high price target of $28.50 and a low target of $5.37, the average target price over the next 12 months is $18.41. Based on these targets, ERJ could surge 118.22% to reach the target high and fall by -58.88% to reach the target low. Reaching the average price target will result in a growth of 40.96% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ERJ will report FY 2022 earnings on 03/07/2024. Analysts have provided yearly estimates in a range of $0.73 being high and $0.11 being low. For ERJ, this leads to a yearly average estimate of $0.39. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Embraer S.A. surprised analysts by -$0.25 when it reported -$0.16 EPS against a consensus estimate of $0.09. The surprise factor in the prior quarter was $0.47. Based on analyst estimates, the high estimate for the next quarter is $0.45 and the low estimate is $0.19. The average estimate for the next quarter is thus $0.32.

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