We recently published a list of Top 10 Growing Aerospace and Defense Stocks For Trump’s Presidency. In this article, we are going to take a look at where Embraer S.A. (NYSE:ERJ) stands against other top growing aerospace and defense stocks for Trump’s Presidency.
There is carnage in the US stock market as the major indices continue to shed points after last week’s aggressive selloff. The Dow was down over 2% with the S&P losing nearly 3% of its value. Nasdaq continued to be the worst of the three, down 4% by market close.
As tariffs continue to spook markets, we look at sectors that are either a safer bet amid the volatility, or provide near-term growth opportunities. In the Aerospace and Defense Industries, such an opportunity is currently presenting itself.
The US is signaling to the rest of the world that it needs to spend more on its own defense rather than relying on the US for military aid. This is making major economies of the world rethink their defense budget allocations.
Since most of the Western world buys its military equipment from the US, the money is eventually going to flow into US companies. This simple bullish thesis is what’s driving the industry and we believe it is time for investors to take positions in these stocks to benefit from this.
To come up with the list of 10 buy and forget Aerospace and Defense stocks for Trump’s Presidency, we only considered stocks with a market cap of at least $2 billion that are the best performers so far in 2025.
An engineer examining a detailed blueprint of an aircraft.
Embraer S.A. (NYSE:ERJ)
Embraer S.A. is a designer, manufacturer, developer, and seller of aircraft and systems. The company operates in Services & Support, Commercial Aviation, Executive Aviation, Defense & Security, and other segments.
Right at the beginning of Trump’s presidency, ERJ received a massive order for 182 executive jets from the US firm Flexjet. This is the largest order in the firm’s history and is what’s driving the recent rally.
Combine the above with over 200 aircraft for Netjets and the company has about 400 jets to deliver in the next 4 years, which should keep its finances in shape. For 2025, the aircraft maker plans to deliver 77-85 commercial aircraft and 145-155 business jets.
The CEO is aware that orders like the one from Flexjet don’t come around every year. However, the sales momentum is expected to stay strong in the near term.
Maybe we won’t hit the same sales levels because of that huge Flexjet contract, which is not something we see every year, but we expect a very good year in terms of sales.
ERJ is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held ERJ at the end of the fourth quarter, which was 25 in the previous quarter.
Overall, ERJ ranks 1st on our list of top growing aerospace and defense stocks for Trump’s Presidency. While we acknowledge the potential of ERJ as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as ERJ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.