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Embraer - AI Stock Analysis

Analysis generated November 29, 2024

Embraer S.A. is a Brazilian aerospace company that produces commercial, military, executive, and agricultural aircraft. It is the third-largest producer of civil aircraft after Boeing and Airbus. Embraer has a strong global presence and is known for its innovation and high-quality products. The company has been focusing on expanding its market share in various segments, including commercial aviation and defense sectors.

Fundamental Analysis

Embraer's revenue for the last quarter was $1.69 billion, reflecting a 12.43% increase compared to the previous quarter and a 31.24% increase compared to the same quarter last year. This robust year-over-year growth indicates a strong upward trajectory in sales.

Net income for the last quarter was $179 million, which marks a significant 79.88% increase compared to the quarter before and a remarkable 186.74% increase year-over-year. This substantial growth reveals improved profitability and operational efficiency.

The company's EBITDA for the last quarter was $436 million, up by 147.26% compared to the previous quarter and by 270.37% year-over-year. These impressive figures indicate strong earnings before interest, taxes, depreciation, and amortization, suggesting robust cash flow and financial health.

The current P/E ratio is 14.76. This ratio, which measures the price of the stock relative to its earnings, is within a normal range, indicating that the stock is neither particularly overvalued nor undervalued.

Technical Analysis

The current stock price is $38.20, representing a 10.05% increase compared to a month ago and a 118.41% increase compared to a year ago, indicating a strong upward movement in both the short-term and long-term trends.

The trend is bullish. The SMA10 (Simple Moving Average for 10 days) is 38.68, which is higher than the previous SMA10 of 38.63, pointing to a potential upward trend in price movement.

However, the Relative Strength Index (RSI) is at 78.2, suggesting that the stock might be overbought, which could be a potential bearish signal in the near term.

Alternative Data Analysis

In terms of job postings, Embraer has 110 open positions, and this number has been stable over the last couple of months, indicating a stable company outlook. Employee sentiment is high, with 87% of employees having a positive outlook, which is a promising sign for the company’s internal environment and long-term prospects.

On the customer acquisition front, Embraer has an estimated 270,000 visitors to their webpage, which is up by 19% in the last couple of months. This bullish trend indicates a potential increase in customer interest and engagement.

Regarding customer engagement, Embraer has 860,000 followers on Instagram and 160,000 on Twitter, with no significant changes in the last couple of months, indicating a steady social media presence.

According to AltIndex's AI score, which predicts a company's stock price based on fundamental, technical, and alternative data analysis, Embraer has a score of 73, which is a strong buy signal.

Conclusion and Recommendation

Embraer exhibits robust financial health, with impressive growth in revenue, net income, and EBITDA. The short-term and long-term stock trends are bullish, although the RSI suggests a potential overbought condition. Alternative data such as employee sentiment and customer engagement further reinforce the company’s positive outlook. Considering all these factors, Embraer appears to be a solid investment with strong growth potential. However, investors should be cautious owing to the high RSI and monitor for potential corrections.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.