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AeroVironment (AVAV) Registers a Bigger Fall Than the Market: Important Facts to Note

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AeroVironment (AVAV - Free Report) ended the recent trading session at $260.07, demonstrating a -2.83% change from the preceding day's closing price. This change lagged the S&P 500's 1.6% loss on the day. At the same time, the Dow lost 1.23%, and the tech-heavy Nasdaq lost 2.24%.

Heading into today, shares of the maker of unmanned aircrafts had gained 8.7% over the past month, outpacing the Aerospace sector's gain of 3.87% and the S&P 500's gain of 2.25%.

The upcoming earnings release of AeroVironment will be of great interest to investors. In that report, analysts expect AeroVironment to post earnings of $0.34 per share. This would mark a year-over-year decline of 61.8%. Meanwhile, our latest consensus estimate is calling for revenue of $453.5 million, up 139.34% from the prior-year quarter.

AVAV's full-year Zacks Consensus Estimates are calling for earnings of $3.23 per share and revenue of $2 billion. These results would represent year-over-year changes of -1.52% and +144.32%, respectively.

Investors should also note any recent changes to analyst estimates for AeroVironment. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 10.37% higher. AeroVironment is currently a Zacks Rank #5 (Strong Sell).

In terms of valuation, AeroVironment is currently trading at a Forward P/E ratio of 82.82. This valuation marks a premium compared to its industry average Forward P/E of 38.43.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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