In the latest close session, AeroVironment (AVAV) was down 1.4% at $307.75. The stock's change was less than the S&P 500's daily gain of 0.03%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq added 0.28%.
Shares of the maker of unmanned aircrafts have appreciated by 19.72% over the course of the past month, outperforming the Aerospace sector's gain of 4.86%, and the S&P 500's gain of 0.6%.
The investment community will be closely monitoring the performance of AeroVironment in its forthcoming earnings report. The company is expected to report EPS of $0.72, up 140% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $479.86 million, showing a 186.24% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.46 per share and revenue of $2 billion, which would represent changes of +5.49% and +143.43%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for AeroVironment. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, AeroVironment holds a Zacks Rank of #4 (Sell).
Looking at its valuation, AeroVironment is holding a Forward P/E ratio of 90.12. This valuation marks a premium compared to its industry average Forward P/E of 37.34.
It's also important to note that AVAV currently trades at a PEG ratio of 4.62. 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 2.35 as trading concluded yesterday.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 49, positioning it in the top 20% 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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