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AeroVironment (AVAV) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, AeroVironment (AVAV - Free Report) closed at $186.67, marking a -4.32% move from the previous day. This move lagged the S&P 500's daily gain of 0.94%. Meanwhile, the Dow gained 0.75%, and the Nasdaq, a tech-heavy index, added 1.52%.

The maker of unmanned aircrafts's stock has climbed by 18.9% in the past month, exceeding the Aerospace sector's gain of 6.97% and the S&P 500's gain of 1.67%.

The investment community will be closely monitoring the performance of AeroVironment in its forthcoming earnings report. The company is scheduled to release its earnings on June 24, 2025. The company's upcoming EPS is projected at $1.44, signifying a 234.88% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $243.67 million, indicating a 23.7% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.09 per share and revenue of $789.23 million, which would represent changes of +3.34% and 0%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for AeroVironment. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 6.63% fall in the Zacks Consensus EPS estimate. At present, AeroVironment boasts a Zacks Rank of #3 (Hold).

With respect to valuation, AeroVironment is currently being traded at a Forward P/E ratio of 47.24. This indicates a premium in contrast to its industry's Forward P/E of 37.21.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 36, placing it within the top 15% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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