AeroVironment (AVAV) closed at $276.99 in the latest trading session, marking a +1.63% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.55%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 2.69%.
Shares of the maker of unmanned aircrafts witnessed a loss of 28% over the previous month, trailing the performance of the Aerospace sector with its loss of 13.87%, and the S&P 500's loss of 1.8%.
The investment community will be closely monitoring the performance of AeroVironment in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.85, marking a 80.85% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $477.43 million, indicating a 153.33% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.62 per share and revenue of $2.01 billion, indicating changes of +10.37% and +144.89%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for AeroVironment. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.29% decrease. AeroVironment is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that AeroVironment has a Forward P/E ratio of 75.25 right now. Its industry sports an average Forward P/E of 34.85, so one might conclude that AeroVironment is trading at a premium comparatively.
Meanwhile, AVAV's PEG ratio is currently 3.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AVAV's industry had an average PEG ratio of 2.38 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 156, positioning it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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