Are Aerospace Stocks Lagging EmbraerEmpresa Brasileira de Aeronautica (EMBJ) This Year?

For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Embraer (EMBJ) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Embraer is a member of the Aerospace sector. This group includes 76 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Embraer is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for EMBJ's full-year earnings has moved 3% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, EMBJ has returned 19.9% so far this year. Meanwhile, the Aerospace sector has returned an average of 7.1% on a year-to-date basis. This means that Embraer is performing better than its sector in terms of year-to-date returns.

Another Aerospace stock, which has outperformed the sector so far this year, is Loar Holdings Inc. (LOAR). The stock has returned 14.5% year-to-date.

The consensus estimate for Loar Holdings Inc.'s current year EPS has increased 75.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Embraer belongs to the Aerospace - Defense industry, a group that includes 39 individual companies and currently sits at #67 in the Zacks Industry Rank. On average, stocks in this group have gained 5.8% this year, meaning that EMBJ is performing better in terms of year-to-date returns.

On the other hand, Loar Holdings Inc. belongs to the Aerospace - Defense Equipment industry. This 36-stock industry is currently ranked #42. The industry has moved +10% year to date.

Embraer and Loar Holdings Inc. 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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