In the latest close session, AeroVironment (AVAV) was down 6.28% at $350.59. The stock fell short of the S&P 500, which registered a gain of 0.53% for the day. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.52%.
Shares of the maker of unmanned aircrafts have appreciated by 31.99% over the course of the past month, outperforming the Aerospace sector's gain of 0.21%, and the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results of AeroVironment in its upcoming release. The company is predicted to post an EPS of $0.87, indicating a 85.11% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $480.86 million, showing a 155.15% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.51 per share and a revenue of $2.01 billion, signifying shifts of +7.01% and +145.48%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for AeroVironment. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.16% higher. AeroVironment is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, AeroVironment is at present trading with a Forward P/E ratio of 106.58. This signifies a premium in comparison to the average Forward P/E of 33.55 for its industry.
It is also worth noting that AVAV currently has a PEG ratio of 6.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Aerospace - Defense Equipment industry had an average PEG ratio of 2.43 as trading concluded yesterday.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
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AeroVironment, Inc. (AVAV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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