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Embraer - AI Stock Analysis
Analysis generated October 11, 2024
Embraer S.A. is a Brazilian aerospace company that produces commercial, military, executive, and agricultural aircraft. With a strong global presence, Embraer is one of the largest aircraft manufacturers in the world, focusing on delivering innovative solutions to enhance air travel. The company has a diversified product portfolio and serves clients all around the globe.
Fundamental Analysis
Embraer's revenue for the last quarter stood at $1.49 billion, reflecting a 23.88% decrease compared to the previous quarter. This is a cause for concern as it shows a decline in quarter-over-quarter performance. However, compared to the same quarter last year, there has been a 16.31% increase in revenue, suggesting positive year-over-year growth. This mixed signal means that while the long-term outlook might be improving, short-term struggles remain.
The net income for the last quarter was $99 million, representing a 47.79% decrease compared to the previous quarter. Although this is worrying, the year-over-year change presents a different story: a significant 611.51% increase in net income. This extreme improvement year-over-year indicates the company's ability to recover and generate profit more efficiently than in the previous year.
EBITDA for the last quarter was $0, reflecting a 100.00% decrease compared to both the previous quarter and the same quarter last year. This complete drop in EBITDA is alarming and indicates operational inefficiencies or substantial non-operating expenses impacting earnings before interest, taxes, depreciation, and amortization.
Currently, Embraer has a Price-to-Earnings (P/E) ratio of 16.03. This value is within a normal range, neither extremely high nor low, suggesting that the market valuations of the stock are stable based on its earnings.
Technical Analysis
Today, Embraer's stock price is $32.50, showing a 6.61% decrease compared to a month ago. This negative short-term trend could concern investors seeking immediate returns. However, compared to a year ago, the stock has experienced a remarkable 138.10% increase, indicating strong long-term growth.
The Simple Moving Average (SMA) over the last 10 days is 33.60, which is lower than the previous SMA10 of 33.83. This suggests a potential downward trend in price movement that is worth monitoring. Additionally, the Relative Strength Index (RSI) is currently at 71.3, suggesting that the stock might be overbought and could be poised for a bearish downturn in the near term.
Alternative Data Analysis
An analysis of job postings and employee sentiment reveals that Embraer has 162 open positions, reflecting a 65% increase in the last couple of months. This indicates that the company is looking to grow and expand, which is a positive sign for future potential and development.
On the customer acquisition front, Embraer has an estimated 260,000 visitors to their webpage, although this number is down by 7% over the last couple of months. This decline could indicate a decrease in customer interest or engagement, which might be worrisome.
Regarding customer engagement, Embraer maintains 860,000 Instagram followers and 160,000 Twitter followers, with no significant change in these metrics recently. Little fluctuation in social media following might suggest stable but unremarkable customer interest.
AltIndex's AI score for Embraer is 67, which qualifies as a buy signal based on combined fundamental, technical, and alternative data analyses.
Conclusion and Recommendation
In conclusion, Embraer presents a mixed picture with both positive long-term growth trends and short-term challenges. The revenue and net income year-over-year improvements are promising, but the quarter-over-quarter declines cannot be ignored. Technical indicators signal a potential bearish short-term trend, although the stock has performed strongly over the past year. Alternative data shows expansion efforts, yet concerns about decreasing customer interest are valid.
Given the current data and the AI score of 67 indicating a buy, it may be prudent to adopt a cautious but optimistic stance. A recommendation would be to "Hold" for current investors or "Buy" for those willing to endure potential short-term volatility for long-term gains.
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.
