AeroVironment (AVAV) ended the recent trading session at $257.80, demonstrating a -7.75% change from the preceding day's closing price. This change lagged the S&P 500's 0.53% loss on the day. At the same time, the Dow lost 0.9%, and the tech-heavy Nasdaq lost 0.38%.
The maker of unmanned aircrafts's shares have seen a decrease of 24.45% over the last month, not keeping up with the Aerospace sector's loss of 5.93% and the S&P 500's loss of 0.5%.
The upcoming earnings release of AeroVironment will be of great interest to investors. The company's earnings report is expected on December 9, 2025. The company is predicted to post an EPS of $0.85, indicating a 80.85% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $477.43 million, indicating a 153.33% increase compared to the same quarter of the previous 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.
It is also important to note the recent changes to analyst estimates for AeroVironment. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.29% decrease. Currently, AeroVironment is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, AeroVironment is presently being traded at a Forward P/E ratio of 77.16. This represents a premium compared to its industry average Forward P/E of 36.4.
It is also worth noting that AVAV currently has a PEG ratio of 3.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Aerospace - Defense Equipment industry held an average PEG ratio of 2.36.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 35% of all 250+ industries.
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.
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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