Why Embraer's Shares Soared Today

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Aircraft manufacturer Embraer (NYSE: ERJ  ) jumped 10% today after signing a huge deal with a customer.

So what: The company announced it will make 47 E-175 jets for Republic Airways (NASDAQOTH: RJETQ  ) in a contract worth up to $4 billion. The company also has the option to buy another 47 aircraft, so the deal could balloon for Embraer.  

Now what: The deal should keep Embraer busy and adds to a deal with Aldus Aviation for as much as $1.56 billion reported earlier this month. This can be a boom or bust business but it appears that airlines are starved for smaller aircraft in the current environment. Shares now trade at 11.6 times forward earnings estimates, a reasonable price given the big deals the company has signed this month.

Interested in more info on Embraer? Add it to your watchlist by clicking here

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2214429, ~/Articles/ArticleHandler.aspx, 5/4/2016 6:23:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated 9 hours ago Sponsored by:
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASD 4,763.22 -54.37 -1.13%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/3/2016 4:02 PM
ERJ $22.73 Down -0.34 -1.47%
Embraer-Empresa Br… CAPS Rating: *****
RJETQ $0.97 Up +0.02 +2.53%
Republic Airways H… CAPS Rating: **