Brazilian aircraft maker Embraer is well positioned to benefit from demand for mid-sized jets. With the price of jet fuel skyrocketing, airlines need to purchase lighter and more fuel efficient jets. As such, Embraer could sell up to 45 jets in the first quarter of 2008, according to research from Bear Stearns. Analysts expect Embraer's earnings to grow about 12.5% this year.

Like other manufacturers, Embraer is getting squeezed by higher materials costs. They're also being hurt by the strengthening of Brazil's currency, the real, since its aircraft are sold in U.S. dollars but its workers are paid in real.

Despite the challenges, the company has managed to crank up production and increase efficiency. Embraer has an order backlog of about $19 billion. That's over 3 years worth of revenues, according to Richard Tortoriello of Standard & Poor's.