AeroVironment (AVAV) closed at $293.22 in the latest trading session, marking a -4.47% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.13%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.72%.
The stock of maker of unmanned aircrafts has risen by 26.89% in the past month, leading the Aerospace sector's gain of 4.37% and the S&P 500's gain of 0.78%.
Analysts and investors alike will be keeping a close eye on the performance of AeroVironment in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.72, signifying a 140.00% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $479.86 million, up 186.24% from the year-ago period.
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. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. AeroVironment currently has a Zacks Rank of #4 (Sell).
In terms of valuation, AeroVironment is presently being traded at a Forward P/E ratio of 88.63. This denotes a premium relative to the industry average Forward P/E of 36.98.
It is also worth noting that AVAV currently has a PEG ratio of 4.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Aerospace - Defense Equipment industry had an average PEG ratio of 2.22.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% 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.
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AeroVironment, Inc. (AVAV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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