AeroVironment (AVAV) closed the most recent trading day at $328.09, moving -1.73% from the previous trading session. This move lagged the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Heading into today, shares of the maker of unmanned aircrafts had lost 18.54% over the past month, lagging the Aerospace sector's gain of 1.11% and the S&P 500's gain of 4.36%.
The investment community will be closely monitoring the performance of AeroVironment in its forthcoming earnings report. The company is forecasted to report an EPS of $0.87, showcasing a 85.11% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $480.86 million, indicating a 155.15% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $3.63 per share and a revenue of $2.01 billion, demonstrating changes of +10.67% and +145.48%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AeroVironment. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, AeroVironment is carrying a Zacks Rank of #5 (Strong Sell).
Looking at valuation, AeroVironment is presently trading at a Forward P/E ratio of 91.91. This valuation marks a premium compared to its industry average Forward P/E of 35.91.
We can additionally observe that AVAV currently boasts a PEG ratio of 4.71. 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 average PEG ratio for the Aerospace - Defense Equipment industry stood at 2.44 at the close of the market yesterday.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 29% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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AeroVironment, Inc. (AVAV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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