AeroVironment (AVAV) ended the recent trading session at $257.30, demonstrating a -9.85% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.51%. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw a decrease of 1.51%.
Coming into today, shares of the maker of unmanned aircrafts had lost 9.97% in the past month. In that same time, the Aerospace sector gained 6.61%, while the S&P 500 gained 0.93%.
Market participants will be closely following the financial results of AeroVironment in its upcoming release. The company's upcoming EPS is projected at $0.72, signifying a 140.00% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $479.86 million, showing a 186.24% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.46 per share and revenue of $2 billion. These totals would mark changes of +5.49% and +143.43%, respectively, from last year.
Any recent changes to analyst estimates for AeroVironment should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 an unchanged state. At present, AeroVironment boasts a Zacks Rank of #4 (Sell).
In terms of valuation, AeroVironment is presently being traded at a Forward P/E ratio of 82.41. 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 4.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense Equipment industry currently had an average PEG ratio of 2.19 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. With its current Zacks Industry Rank of 60, this industry ranks in the top 25% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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