Has EmbraerEmpresa Brasileira de Aeronautica (EMBJ) Outpaced Other Aerospace Stocks This Year?

The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Embraer (EMBJ) one of those stocks right now? 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 76 individual stocks in the Aerospace sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Embraer is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for EMBJ's full-year earnings has moved 5.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, EMBJ has returned 14.7% so far this year. Meanwhile, the Aerospace sector has returned an average of -4.9% on a year-to-date basis. This shows that Embraer is outperforming its peers so far this year.

Another stock in the Aerospace sector, Elbit Systems (ESLT), has outperformed the sector so far this year. The stock's year-to-date return is 21.7%.

The consensus estimate for Elbit Systems' current year EPS has increased 2.1% 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 39 individual stocks and currently sits at #89 in the Zacks Industry Rank. On average, this group has lost an average of 5.4% so far this year, meaning that EMBJ is performing better in terms of year-to-date returns.

Elbit Systems, however, belongs to the Aerospace - Defense Equipment industry. Currently, this 36-stock industry is ranked #45. The industry has moved -3.7% so far this year.

Embraer and Elbit Systems could continue their solid performance, so investors interested in Aerospace stocks should continue to pay close attention to these stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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