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AeroVironment (AVAV) Stock Moves -0.24%: What You Should Know

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AeroVironment (AVAV - Free Report) closed the most recent trading day at $215.48, moving -0.24% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq lost 0.33%.

Shares of the maker of unmanned aircrafts have appreciated by 3.87% over the course of the past month, outperforming the Aerospace sector's loss of 7.9% and the S&P 500's gain of 0.41%.

Market participants will be closely following the financial results of AeroVironment in its upcoming release. In that report, analysts expect AeroVironment to post earnings of $0.66 per share. This would mark a year-over-year decline of 31.96%. At the same time, our most recent consensus estimate is projecting a revenue of $178.96 million, reflecting a 1.03% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.36 per share and revenue of $802.14 million, which would represent changes of +12.37% and +11.92%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AeroVironment. 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. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, AeroVironment boasts a Zacks Rank of #3 (Hold).

In terms of valuation, AeroVironment is currently trading at a Forward P/E ratio of 64.35. For comparison, its industry has an average Forward P/E of 31.2, which means AeroVironment is trading at a premium to the group.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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