Is NYSE:ERJ suited for high growth investing?

Our stock screener has identified EMBRAER SA-SPON ADR (NYSE:ERJ) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:ERJ.

Technical analysis of NYSE:ERJ

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, ERJ scores 7 out of 10 in our technical rating. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• When comparing the yearly performance of all stocks, we notice that ERJ is one of the better performing stocks in the market, outperforming 93% of all 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 64 other stocks in this industry. ERJ outperforms 84% of them.
• ERJ is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so ERJ is lagging the market slightly.
• The long term trend is positive and the short term trend is negative. It is probably better to wait until this picture becomes clearer.

Our latest full technical report of ERJ contains the most current technical analsysis.

Why is NYSE:ERJ a setup?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:ERJ is 8:

ERJ has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 36.53, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ERJ in the last couple of days, which is a good sign.

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

• The EPS of EMBRAER SA-SPON ADR has exhibited growth from one quarter to another (Q2Q), with a 650.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• The q2q revenue growth of 31.77% of EMBRAER SA-SPON ADR highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.
• 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.
• With a favorable trend in its operating margin over the past year, EMBRAER SA-SPON ADR demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• The Return on Equity (ROE) of EMBRAER SA-SPON ADR stands at 15.22%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
• Maintaining a Debt-to-Equity ratio of 0.84, EMBRAER SA-SPON ADR demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• With 52.71% 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 93.56 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 ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.