AeroVironment (AVAV) closed the most recent trading day at $268.92, moving +1.91% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 0.26%.
The maker of unmanned aircrafts's shares have seen an increase of 39.82% over the last month, surpassing the Aerospace sector's gain of 5.39% and the S&P 500's gain of 4.51%.
The investment community will be closely monitoring the performance of AeroVironment in its forthcoming earnings report. The company's upcoming EPS is projected at $0.34, signifying a 61.80% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $453.5 million, reflecting a 139.34% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.23 per share and a revenue of $2 billion, indicating changes of -1.52% and +144.32%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for AeroVironment. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
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. Within the past 30 days, our consensus EPS projection has moved 21.75% lower. At present, AeroVironment boasts a Zacks Rank of #5 (Strong Sell).
With respect to valuation, AeroVironment is currently being traded at a Forward P/E ratio of 81.66. This valuation marks a premium compared to its industry average Forward P/E of 38.72.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AeroVironment, Inc. (AVAV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
