EMBRAER SA-SPON ADR (NYSE:ERJ) – A High-Growth Momentum Stock with Strong Technical Setup

EMBRAER SA-SPON ADR (NYSE:ERJ) stands out as a high-growth momentum candidate with a solid technical setup. The company, a key player in aerospace and defense, has demonstrated exceptional earnings and revenue growth while maintaining strong technical momentum.

Why ERJ Fits High-Growth Momentum Criteria

• Explosive Earnings Growth: ERJ reported a staggering 1,377% year-over-year EPS growth (TTM), with recent quarterly EPS growth exceeding 13,482%. This acceleration indicates strong operational performance.
• Revenue Expansion: Sales growth surged 599.7% in the latest quarter, with full-year revenue up 35.7%, reflecting robust demand for its aircraft and services.
• Profit Margin Improvement: The company’s profit margin expanded to 6.78% in the most recent quarter, up from 1.92% in the prior quarter, signaling better cost management and pricing power.
• Positive Analyst Revisions: Upward revisions in both EPS (105.4%) and revenue (105.4%) estimates for the next year suggest continued optimism.
• Free Cash Flow Growth: FCF per share grew 2,305% over the past year, reinforcing financial health.

Technical Strength and Setup

ERJ scores a perfect 10 in ChartMill’s Technical Rating, reflecting strong price momentum and relative strength. Key technical highlights:

• Uptrend Confirmed: Both short-term and long-term trends are positive, with the stock outperforming 94% of all stocks over the past year.
• Consolidation Pattern: The Setup Rating of 7 indicates a pullback within a broader uptrend, offering a potential entry point. Support zones are well-defined near $47.78, providing a logical stop-loss level.
• Low Volatility Entry: Reduced volatility in recent weeks suggests a possible breakout if momentum resumes.

For a deeper technical breakdown, review the full technical report for ERJ.

Our High Growth Momentum Breakout Setups Screen lists more stocks with similar growth and technical profiles, updated daily.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.