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AeroVironment (AVAV) Stock Declines While Market Improves: Some Information for Investors

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In the latest market close, AeroVironment (AVAV - Free Report) reached $193.11, with a -1.43% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.27%.

Heading into today, shares of the maker of unmanned aircrafts had lost 11.31% over the past month, lagging the Aerospace sector's loss of 0.34% and the S&P 500's gain of 2.1% in that time.

Analysts and investors alike will be keeping a close eye on the performance of AeroVironment in its upcoming earnings disclosure. The company's earnings report is set to go public on December 4, 2024. The company's earnings per share (EPS) are projected to be $0.66, reflecting a 31.96% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $178.96 million, down 1.03% from the year-ago period.

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.

It's also important for investors to be aware of any recent modifications to analyst estimates for AeroVironment. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. AeroVironment is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, AeroVironment is presently being traded at a Forward P/E ratio of 58.36. This denotes a premium relative to the industry's average Forward P/E of 32.85.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 30% of over 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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