In the latest trading session, AeroVironment (AVAV - Free Report) closed at $89.95, marking a +1.09% move from the previous day. This change outpaced the S&P 500's 0.3% gain on the day. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.92%.
Coming into today, shares of the maker of unmanned aircrafts had lost 1.18% in the past month. In that same time, the Aerospace sector lost 8.62%, while the S&P 500 lost 4.06%.
Investors will be hoping for strength from AVAV as it approaches its next earnings release, which is expected to be November 29, 2018. On that day, AVAV is projected to report earnings of $0.16 per share, which would represent a year-over-year decline of 44.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $74.83 million, up 1.35% from the year-ago period.
AVAV's full-year Zacks Consensus Estimates are calling for earnings of $1.36 per share and revenue of $307.72 million. These results would represent year-over-year changes of +25.93% and +2.95%, respectively.
Investors should also note any recent changes to analyst estimates for AVAV. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AVAV is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, AVAV is holding a Forward P/E ratio of 66.38. This valuation marks a premium compared to its industry's average Forward P/E of 19.01.
Investors should also note that AVAV has a PEG ratio of 3.32 right now. 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. The Aerospace - Defense Equipment industry currently had an average PEG ratio of 2.23 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
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