Sell Boeing, Buy Embraer (Video)
Summary
- Embraer could be now, where Boeing was just a few years ago.
- Embraer's investment cycle is coming to an end. Margins, cash flows and earnings should improve. The deal with Boeing is just another positive.
- The risks include Brazilian politics but also American economics.
There is a lot of speculation about what will happen between Embraer (ERJ) and Boeing (BA). However, speculation aside, ERJ still offers a tempting risk-reward opportunity. A fundamental comparison with BA shows that ERJ is significantly undervalued.
The company has been investing a lot into developing new products over the past few years and 2019 should be the turnaround year.
Please enjoy the video where I give an overview of ERJ, discuss the risks involved in an investment and compare it to BA.
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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.