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

A possible breakout setup was detected on EMBRAER SA-SPON ADR (NYSE:ERJ) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:ERJ.

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

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 10 out of 10 in our technical rating. 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.
• Looking at the yearly performance, ERJ did better than 95% of all other stocks. On top of that, ERJ also shows a nice and consistent pattern of rising prices.
• ERJ is one of the better performing stocks in the Aerospace & Defense industry, it outperforms 87% of 65 stocks in the same industry.
• 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.
• In the last month ERJ has a been trading in the 39.27 - 46.10 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

How does the Setup look for NYSE:ERJ

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:ERJ exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, ERJ also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 42.55, 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.

Some of the high growth metrics of NYSE:ERJ highlighted

• 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.
• EMBRAER SA-SPON ADR has achieved 31.77% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
• The recent financial report of EMBRAER SA-SPON ADR demonstrates a 650.0% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising 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.
• EMBRAER SA-SPON ADR has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• In terms of Return on Equity(ROE), EMBRAER SA-SPON ADR is performing well, achieving a 15.22% ratio. This highlights the company's effective allocation of shareholder investments and signifies its commitment to maximizing returns.
• 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.
• EMBRAER SA-SPON ADR exhibits a favorable ownership structure, with an institutional shareholder ownership of 52.71%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.
• The Relative Strength (RS) of EMBRAER SA-SPON ADR has been consistently solid, with a current 95.57 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage. EMBRAER SA-SPON ADR exhibits strong prospects for further price appreciation.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.