In the latest close session, AeroVironment (AVAV) was down 4.84% at $235.18. This change lagged the S&P 500's daily loss of 0.59%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq lost 1.46%.
Prior to today's trading, shares of the maker of unmanned aircrafts had lost 9.2% lagged the Aerospace sector's loss of 0.16% and the S&P 500's gain of 2.49%.
Market participants will be closely following the financial results of AeroVironment in its upcoming release. The company is expected to report EPS of $0.34, down 61.8% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $453.5 million, indicating a 139.34% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.23 per share and revenue of $2 billion. These totals would mark changes of -1.52% and +144.32%, respectively, from last year.
Investors should also note any 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 business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. AeroVironment currently has a Zacks Rank of #4 (Sell).
Looking at valuation, AeroVironment is presently trading at a Forward P/E ratio of 76.47. This valuation marks a premium compared to its industry average Forward P/E of 38.16.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 165, positioning it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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AeroVironment, Inc. (AVAV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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