Is NYSE:ERJ suited for high growth investing?

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.

What is the technical picture of NYSE:ERJ telling us.

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

We assign a technical rating of 10 out of 10 to ERJ. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, ERJ is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that ERJ is one of the better performing stocks in the market, outperforming 95% of all stocks. We also observe that the gains produced by ERJ over the past year are nicely spread over this period.
• ERJ is one of the better performing stocks in the Aerospace & Defense industry, it outperforms 82% of 65 stocks in the same industry.
• 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.
• ERJ is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

For an up to date full technical analysis you can check the technical report of ERJ

How do we evaluate the setup for NYSE:ERJ?

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 7:

ERJ has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. 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 38.70, a Stop Loss order could be placed below this zone.

Some of the high growth metrics of NYSE:ERJ highlighted

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), EMBRAER SA-SPON ADR highlights its ability to generate increasing profitability, showcasing a 650.0% growth.
• EMBRAER SA-SPON ADR has demonstrated strong quarter-to-quarter (Q2Q) revenue growth of 31.77%, reflecting its ability to generate consistent increases in sales. This growth highlights the company's effective market positioning and its potential for continued success.
• In the most recent financial report, EMBRAER SA-SPON ADR reported a 650.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• EMBRAER SA-SPON ADR shows accelerating EPS growth: when comparing the current Q2Q growth of 650.0% to the previous year Q2Q growth of 200.0%, we see the growth rate improving.
• The operating margin of EMBRAER SA-SPON ADR has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• With a favorable Return on Equity (ROE) of 15.22%, EMBRAER SA-SPON ADR demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• 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.
• The ownership composition of EMBRAER SA-SPON ADR reflects a balanced investor ecosystem, with institutional shareholders owning 52.71%. This indicates a broader market participation and potential for increased trading liquidity.
• EMBRAER SA-SPON ADR has achieved an impressive Relative Strength (RS) rating of 95.3, showcasing its ability to outperform the broader market. This strong performance positions EMBRAER SA-SPON ADR as an attractive stock for potential price appreciation.

More ideas for high growth momentum breakouts can be found on ChartMill 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.