Why These Defense Stocks Are Declining This Week

6. Embraer S.A. (NYSE:ERJ)

Weekly Decline: -12.22%

Embraer S.A. (NYSE:ERJ) is a Brazil-based jet manufacturer that produces aircraft for commercial and executive aviation and defense purposes.

Shares fell by 12.22% this week after Wolfe Research downgraded the stock to Peer Perform from Outperform, citing risks associated with recent tariffs and Embraer S.A. (NYSE:ERJ)’s limited upside potential. As a result, it finds itself among the defense stocks that are declining this week.

Despite the dip, 2025 has been a stellar year for Embraer S.A. (NYSE:ERJ), with year-to-date gains of over 73% as of the close of business on March 28. The company has received several high-value orders this year, including a $7 billion agreement with Flexjet in February.