AeroVironment (AVAV - Free Report) closed at $102.42 in the latest trading session, marking a -0.78% move from the prior day. This change was narrower than the S&P 500's 0.92% loss on the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.65%.
Heading into today, shares of the maker of unmanned aircrafts had gained 13.39% over the past month, outpacing the Aerospace sector's loss of 6.97% and the S&P 500's loss of 2.56% in that time.
AVAV will be looking to display strength as it nears its next earnings release, which is expected to be December 4, 2018. In that report, analysts expect AVAV to post earnings of $0.16 per share. This would mark a year-over-year decline of 44.83%. Meanwhile, our latest consensus estimate is calling for revenue of $74.83 million, up 1.35% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.36 per share and revenue of $307.72 million. These totals would mark changes of +25.93% and +2.95%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AVAV. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. AVAV is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that AVAV has a Forward P/E ratio of 76.18 right now. This valuation marks a premium compared to its industry's average Forward P/E of 19.97.
Meanwhile, AVAV's PEG ratio is currently 3.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.15 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 30% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.