Embraer Clears Key Benchmark, Hitting 80-Plus RS Rating

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On Wednesday, Embraer ( ERJ ) hit an important technical milestone, with its Relative Strength ( RS ) Rating moving into the 80-plus percentile with an upgrade to 82, up from 76 the day before.

[ibd-display-video id=2881825 width=50 float=left autostart=true] IBD's proprietary rating measures price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks holds up against all the other stocks in our database.

Over 100 years of market history shows that the top-performing stocks often have an RS Rating of at least 80 in the early stages of their moves.

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Embraer is within a buy zone after breaking past a 25.05 entry in a consolidation . Once a stock moves 5% or higher beyond the original entry, it's considered out of buy range.

The company reported 95% earnings growth last quarter. Revenue increased -13%.

Embraer earns the No. 18 rank among its peers in the Aerospace/Defense industry group. Teledyne Technologies ( TDY ), Heico ( HEI ) and Mercury Systems ( MRCY ) are among the top 5 highly rated stocks within the group.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
Referenced Symbols: ERJ , RS , TDY , HEI , MRCY

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