On Monday, Embraer announced that it finalized the terms of a proposed deal to sell 80% of its commercial aviation business to Boeing Co. As of now, the Brazilian aircraft manufacturer's commercial aviation unit is valued at $5.26 billion - that’s higher than the $4.75 billion estimated when the deal was originally announced in July.
The sale could fetch Embraer around $3 billion after accounting for closing costs. The deal is still subject to shareholder approvals at both Embraer and Boeing. Embraer's board Monday put forth the proposed deal for approval from the Brazilian government.
Additionally, Embrarer revealed plans of a joint venture with Boeing on promoting defense plane KC-390. Embraer will have 51% ownership of the operation.
ERJ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 38 cases where ERJ's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ERJ's RSI Indicator exited the oversold zone, of 30 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 18, 2023. You may want to consider a long position or call options on ERJ as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ERJ just turned positive on May 17, 2023. Looking at past instances where ERJ's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ERJ advanced for three days, in of 284 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 60 cases where ERJ's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
ERJ moved below its 50-day moving average on May 03, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ERJ crossed bearishly below the 50-day moving average on May 05, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ERJ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for ERJ entered a downward trend on May 18, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ERJ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.058) is normal, around the industry mean (25.117). ERJ's P/E Ratio (10000.000) is considerably higher than the industry average of (311.047). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (7.856). ERJ has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.023). P/S Ratio (0.598) is also within normal values, averaging (173.523).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ERJ’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows