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AeroVironment (AVAV) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, AeroVironment (AVAV - Free Report) closed at $185.96, marking a -0.09% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.39%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.2%.

The maker of unmanned aircrafts's shares have seen an increase of 14.16% over the last month, surpassing the Aerospace sector's gain of 2.81% and the S&P 500's gain of 1.7%.

Investors will be eagerly watching for the performance of AeroVironment in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.58, signifying a 7.94% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $189.25 million, indicating a 1.43% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.38 per share and a revenue of $811.51 million, demonstrating changes of +13.04% and +13.23%, respectively, from the preceding year.

Any recent changes to analyst estimates for AeroVironment should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AeroVironment is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note AeroVironment's current valuation metrics, including its Forward P/E ratio of 55.01. This signifies a premium in comparison to the average Forward P/E of 29.93 for its industry.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 136, finds itself in the bottom 46% echelons 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.


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