EMBRAER SA-SPON ADR (NYSE:ERJ) is a candidate for high growth investors. Here's why.

Our stock screener has flagged EMBRAER SA-SPON ADR (NYSE:ERJ) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:ERJ for potential movement.

Zooming in on the technicals.

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 10 out of 10 to ERJ. Both in the recent history as in the last year, ERJ has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, ERJ did better than 93% of all other stocks. We also observe that the gains produced by ERJ over the past year are nicely spread over this period.
• ERJ is part of the Aerospace & Defense industry. There are 65 other stocks in this industry. ERJ outperforms 84% of them.
• ERJ is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month ERJ has a been trading in the 33.06 - 40.34 range, which is quite wide. It is currently trading near the high of this range.

Check the latest full technical report of ERJ for a complete technical analysis.

Why is NYSE:ERJ a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:ERJ scores a 8 out of 10:

Besides having an excellent technical rating, ERJ also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 35.59, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Why NYSE:ERJ may be interesting for high growth investors.

• EMBRAER SA-SPON ADR has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 650.0% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• EMBRAER SA-SPON ADR has achieved significant quarter-to-quarter (Q2Q) revenue growth of 31.77%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
• The quarterly earnings of EMBRAER SA-SPON ADR have shown a 650.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• The earnings per share (EPS) growth of EMBRAER SA-SPON ADR are accelerating: the current Q2Q growth of 650.0% is above the previous year Q2Q growth of 200.0%. Earnings momentum and acceleration are key for high growth systems.
• EMBRAER SA-SPON ADR has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• EMBRAER SA-SPON ADR demonstrates a strong Return on Equity(ROE) of 15.22%. This indicates the company's ability to generate favorable returns for shareholders and reflects its efficient utilization of capital. EMBRAER SA-SPON ADR shows promising potential for continued success.
• EMBRAER SA-SPON ADR maintains a healthy Debt-to-Equity ratio of 0.84. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.
• With 39.65% of the total shares held by institutional investors, EMBRAER SA-SPON ADR showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• EMBRAER SA-SPON ADR has exhibited strong Relative Strength(RS) in recent periods, with a current 93.75 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. EMBRAER SA-SPON ADR shows promising potential for continued price momentum.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.