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

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The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Embraer (ERJ - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.

Embraer is one of 53 individual stocks in the Aerospace sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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 #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ERJ's full-year earnings has moved 12.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, ERJ has moved about 24.3% on a year-to-date basis. Meanwhile, the Aerospace sector has returned an average of 5.3% on a year-to-date basis. This shows that Embraer is outperforming its peers so far this year.

Safran SA (SAFRY - Free Report) is another Aerospace stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 20.8%.

In Safran SA's case, the consensus EPS estimate for the current year increased 2.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Embraer belongs to the Aerospace - Defense industry, a group that includes 25 individual stocks and currently sits at #167 in the Zacks Industry Rank. On average, this group has gained an average of 6.6% so far this year, meaning that ERJ is performing better in terms of year-to-date returns. Safran SA is also part of the same industry.

Going forward, investors interested in Aerospace stocks should continue to pay close attention to Embraer and Safran SA as they could maintain their solid performance.


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