(ERJ) Embraer - Ratings and Ratios

Embraer S.A., a global aerospace leader, designs, develops, manufactures, and delivers a diverse range of aircraft and systems. Its operational footprint spans North America, Latin America, the Asia Pacific, Brazil, Europe, and other international markets. The companys business is organized into five primary segments: Commercial Aviation, Defense & Security, Executive Aviation, Services & Support, and Other. The Commercial Aviation segment focuses on the development, production, and sale of commercial jets, addressing the needs of regional and global airlines. The Defense & Security segment specializes in military aircraft, radar systems, and advanced software solutions for communications, surveillance, and reconnaissance, positioning itself as a key player in defense modernization. The Executive Aviation segment caters to the luxury aviation market, producing and selling executive jets that combine performance, comfort, and technology. The Services & Support segment provides comprehensive after-sales support, including field and technical assistance, aircraft modifications, maintenance solutions, and training programs, ensuring operational readiness for its clients. The Other segment encompasses a wide range of activities, including the production of structural aircraft parts, agricultural aircraft, and eVTOLs (electric vertical takeoff and landing vehicles), as well as cybersecurity, software development, and engineering services.

Embraer S.A. was established in 1969 and is headquartered in São Paulo, Brazil. The company has a long history of innovation and has evolved from a domestic manufacturer to a global aerospace leader. Its product portfolio includes iconic aircraft such as the E-Jets family, the A-29 Super Tucano for military operations, and the Phenom and Praetor executive jets. Embraer has also made significant strides in emerging technologies, including electric propulsion systems and urban air mobility solutions. The companys commitment to sustainability and innovation has positioned it as a key player in the future of aviation.

As of the latest data, Embraer S.A. (NYSE:ERJ) is listed on the New York Stock Exchange under the ticker symbol ERJ. The company falls under the Aerospace & Defense industry category within the GICS Sub Industry classification. Its market capitalization stands at approximately $8.1 billion USD, with a price-to-earnings ratio of 22.22 and a forward P/E of 21.10, indicating moderate valuation levels relative to its earnings. The companys price-to-book ratio is 2.60, and its price-to-sales ratio is 0.23, suggesting a premium valuation relative to its book value but a relatively low valuation compared to its revenue. Embraers return on equity (RoE) is 19.11%, reflecting its ability to generate profits from shareholders equity.

From a technical perspective, Embraers stock (ERJ) is currently trading at $44.59, with a 20-day average volume of 1,470,368 shares. The stocks short-term trend, as indicated by the SMA 20, is at $43.62, while the SMA 50 and SMA 200 are at $46.38 and $38.03, respectively, suggesting a mixed trend with potential support at lower levels. The Average True Range (ATR) of 2.12 indicates moderate volatility in recent trading sessions. Key resistance is at $50.5, while support levels are identified at $43.2, $40.8, $37.2, $35.2, $32.9, $30.2, and $27.0.

### 3-Month Forecast Technical Outlook: The stock is likely to face resistance at $50.5, which could cap upside movements in the near term. Support levels at $43.2 and $40.8 are critical, as they may provide a floor for the stock price. The SMA 20 ($43.62) is slightly below the current price, suggesting potential buying interest at this level. The ATR of 2.12 indicates that price fluctuations are expected to remain moderate, with a potential trading range between $42.47 ($44.59 - ATR) and $46.71 ($44.59 + ATR). Fundamental Outlook: The companys market cap of $8.1 billion and P/E of 22.22 suggest that investors are pricing in moderate growth expectations. The forward P/E of 21.10 indicates that analysts expect some earnings growth in the coming year. The P/S ratio of 0.23 reflects undervaluation relative to revenue, which could attract value investors. However, the P/B ratio of 2.60 suggests that the market is pricing in intangible assets or future growth potential. The RoE of 19.11% highlights strong profitability, which could support further price appreciation. Overall Forecast: In the next three months, ERJ is expected to trade within a range of $42.50 to $50.50, with potential upside driven by positive earnings surprises or macroeconomic tailwinds. Support levels at $43.2 and $40.8 are likely to hold, barring any significant negative catalysts. The stocks valuation metrics suggest a balance between growth and value, making it attractive to investors seeking exposure to the aerospace and defense sector.