EMBRAER SA-SPON ADR (NYSE:ERJ) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template. The company, a key player in aerospace and defense, has shown strong technical and fundamental characteristics that make it a candidate for further analysis.
Why ERJ Fits the Minervini Trend Template
Minervini’s strategy focuses on stocks in strong uptrends with improving fundamentals. ERJ meets several key technical criteria:
- Price Above Key Moving Averages: The stock is trading above its 50-day ($47.07), 150-day ($41.63), and 200-day ($39.56) moving averages, confirming a bullish trend.
- Upward-Sloping Averages: The 150-day and 200-day moving averages are rising, indicating sustained upward momentum.
- Relative Strength: With a ChartMill Relative Strength (CRS) score of 95.32, ERJ outperforms 95% of all stocks, a key factor in Minervini’s approach.
- Price Near 52-Week High: The stock is within 25% of its 52-week high ($56.61), showing strong momentum.
High Growth Fundamentals
Beyond technicals, ERJ exhibits strong growth metrics:
- Earnings Growth: EPS surged 1,377% year-over-year (TTM), with recent quarterly EPS growth exceeding 13,482%.
- Revenue Growth: Sales grew nearly 600% in the latest quarter, with full-year revenue up 35.67%.
- Profit Margins Expanding: Quarterly profit margins improved to 6.78%, up from 1.92% in the prior quarter.
- Analyst Revisions: EPS and revenue estimates for next year have been revised upward by over 105% in the last three months.
Technical Outlook
According to ChartMill’s technical report, ERJ has a perfect technical rating of 10, supported by:
- Strong long-term and short-term uptrends.
- Multiple support levels between $39.85 and $47.07, providing downside protection.
- High liquidity with average daily volume of 1.75 million shares.
While the setup rating is currently 6 due to recent volatility, the stock remains a compelling candidate for growth investors.
For a deeper technical breakdown, review the full ChartMill technical report.
Our High Growth Momentum + Trend Template screener lists more stocks meeting these criteria.
Disclaimer
This is not investment advice. Always conduct your own research before making any investment decisions.
