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.
The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 20 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
ERJ broke above its upper Bollinger Band on March 22, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
ERJ moved above its 50-day moving average on February 22, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ERJ crossed bullishly above the 50-day moving average on February 23, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher 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 304 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 249 cases where ERJ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock slightly better than average.
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 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 (1.943) is normal, around the industry mean (4.985). ERJ's P/E Ratio (10000.000) is considerably higher than the industry average of (286.030). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (7.550). Dividend Yield (0.000) settles around the average of (0.025) among similar stocks. P/S Ratio (1.021) is also within normal values, averaging (166.189).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of passenger aircrafts
Industry AerospaceDefense