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AeroVironment (AVAV) Stock Moves -1.51%: What You Should Know

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In the latest trading session, AeroVironment (AVAV - Free Report) closed at $392.29, marking a -1.51% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.71%. Elsewhere, the Dow lost 1.9%, while the tech-heavy Nasdaq lost 3.56%.

The maker of unmanned aircrafts's stock has climbed by 64.71% in the past month, exceeding the Aerospace sector's gain of 5.34% and the S&P 500's gain of 3.5%.

The investment community will be closely monitoring the performance of AeroVironment in its forthcoming earnings report. The company is expected to report EPS of $0.83, up 76.6% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $480.86 million, indicating a 155.15% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.43 per share and revenue of $2.01 billion. These totals would mark changes of +4.57% and +145.48%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AeroVironment. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.62% higher. As of now, AeroVironment holds a Zacks Rank of #3 (Hold).

Looking at its valuation, AeroVironment is holding a Forward P/E ratio of 116.12. This expresses a premium compared to the average Forward P/E of 34.27 of its industry.

Also, we should mention that AVAV has a PEG ratio of 7.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AVAV's industry had an average PEG ratio of 2.36 as of yesterday's close.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 52, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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