(ERJ) Embraer - Ratings and Ratios

Embraer SA ADR (NYSE:ERJ) is a diversified aerospace conglomerate with a presence in multiple regions, operating through various segments, including commercial aviation, defense and security, executive aviation, and services and support. The companys broad portfolio includes commercial jets, military aircraft, executive jets, and a range of support services, such as maintenance, training, and technical support.

ERJs business is characterized by a mix of high-margin executive jets, commercial aircraft, and defense-related products and services. The companys defense segment is involved in the development and production of military aircraft, radars, and integrated information systems, while its services segment provides a range of support solutions, including field and technical support, flight operations, and training programs.

ERJs diversified business model and global presence provide a degree of stability, but the company is still exposed to industry cycles, regulatory risks, and geopolitical uncertainties. The companys eVTOL (electric vertical takeoff and landing) development and certification efforts represent a significant opportunity for future growth, as the urban air mobility market is expected to expand in the coming years.

Analyzing the provided , ERJs last price is $46.51, with a 20-day SMA of $47.86 and a 50-day SMA of $45.84, indicating a potential short-term reversal. The 200-day SMA is $40.63, suggesting a longer-term uptrend. The ATR is 1.43, representing 3.08% of the last price, indicating moderate volatility. Considering the , ERJs market capitalization is approximately $8.57 billion, with a P/E ratio of 21.29 and a forward P/E of 23.58, suggesting a relatively reasonable valuation. The RoE is 8.72%, indicating a decent return on equity.

Based on the and , a forecast for ERJ is as follows: the stock is likely to experience a short-term correction, potentially testing the $45.84 SMA, before resuming its longer-term uptrend. If the company can maintain its momentum in the executive aviation and defense segments, while making progress on its eVTOL development, the stock could potentially reach $50-$55 in the next 6-12 months, representing a 7-18% upside from current levels.