Is EmbraerEmpresa Brasileira de Aeronautica (ERJ) Stock Outpacing Its Aerospace Peers This Year?

Zacks
2024-12-09

Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Has Embraer (ERJ) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.

Embraer is one of 46 companies in the Aerospace group. The Aerospace group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Embraer is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ERJ's full-year earnings has moved 37.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, ERJ has gained about 105.1% so far this year. Meanwhile, stocks in the Aerospace group have gained about 1.2% on average. This means that Embraer is outperforming the sector as a whole this year.

Another Aerospace stock, which has outperformed the sector so far this year, is Intuitive Machines, Inc. (LUNR). The stock has returned 386.1% year-to-date.

For Intuitive Machines, Inc. the consensus EPS estimate for the current year has increased 55.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Embraer is a member of the Aerospace - Defense industry, which includes 22 individual companies and currently sits at #174 in the Zacks Industry Rank. On average, stocks in this group have lost 7.8% this year, meaning that ERJ is performing better in terms of year-to-date returns. Intuitive Machines, Inc. is also part of the same industry.

Embraer and Intuitive Machines, Inc. could continue their solid performance, so investors interested in Aerospace stocks should continue to pay close attention to these stocks.

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