AeroVironment (AVAV) Gains As Market Dips: What You Should Know

The most recent trading session ended with AeroVironment (AVAV) standing at $200.44, reflecting a +1.36% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.6% loss on the day. Elsewhere, the Dow lost 0.86%, while the tech-heavy Nasdaq lost 1.08%.

Heading into today, shares of the maker of unmanned aircrafts had gained 21.67% over the past month, outpacing the Aerospace sector's gain of 0.34% and the S&P 500's gain of 3.15% 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 is predicted to post an EPS of $0.21, indicating a 78.79% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $187.79 million, indicating a 0.94% growth compared to the corresponding quarter of the prior year.

Investors should also pay attention to any latest changes in analyst estimates for AeroVironment. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, AeroVironment is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, AeroVironment is presently trading at a Forward P/E ratio of 57.82. For comparison, its industry has an average Forward P/E of 29.49, 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 58, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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