AeroVironment (AVAV) closed the most recent trading day at $364.28, moving +2.56% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.58%. Elsewhere, the Dow saw an upswing of 0.31%, while the tech-heavy Nasdaq appreciated by 0.89%.
Shares of the maker of unmanned aircrafts witnessed a gain of 17.8% over the previous month, beating the performance of the Aerospace sector with its gain of 0.88%, and the S&P 500's gain of 0.16%.
The investment community will be paying close attention to the earnings performance of AeroVironment in its upcoming release. The company's earnings per share (EPS) are projected to be $0.87, reflecting a 85.11% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $480.86 million, up 155.15% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.51 per share and revenue of $2.01 billion, indicating changes of +7.01% and +145.48%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for AeroVironment. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, AeroVironment holds a Zacks Rank of #3 (Hold).
From a valuation perspective, AeroVironment is currently exchanging hands at a Forward P/E ratio of 101.19. This indicates a premium in contrast to its industry's Forward P/E of 34.4.
Meanwhile, AVAV's PEG ratio is currently 6.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense Equipment industry had an average PEG ratio of 2.46 as trading concluded yesterday.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 40% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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AeroVironment, Inc. (AVAV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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