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AeroVironment (AVAV) Suffers a Larger Drop Than the General Market: Key Insights

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AeroVironment (AVAV - Free Report) closed the most recent trading day at $123.50, moving -2.73% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.74%.

Shares of the maker of unmanned aircrafts witnessed a loss of 3.46% over the previous month, trailing the performance of the Aerospace sector with its gain of 4.84%, and the S&P 500's loss of 3.31%.

Analysts and investors alike will be keeping a close eye on the performance of AeroVironment in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.46, reflecting a 4.55% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $504.68 million, up 6.81% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.26 per share and revenue of $2.21 billion. These totals would mark changes of -1.51% and +11.67%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for AeroVironment. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AeroVironment presently features a Zacks Rank of #2 (Buy).

In terms of valuation, AeroVironment is currently trading at a Forward P/E ratio of 38.9. This signifies a premium in comparison to the average Forward P/E of 31.11 for its industry.

We can additionally observe that AVAV currently boasts a PEG ratio of 1.99. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AVAV's industry had an average PEG ratio of 1.89 as of yesterday's close.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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