AeroVironment (AVAV) closed at $263.26 in the latest trading session, marking a -4.04% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.33% for the day. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 0.59%.
The stock of maker of unmanned aircrafts has fallen by 25.99% in the past month, lagging the Aerospace sector's gain of 0.33% and the S&P 500's loss of 0%.
The investment community will be paying close attention to the earnings performance of AeroVironment in its upcoming release. On that day, AeroVironment is projected to report earnings of $0.72 per share, which would represent year-over-year growth of 140%. In the meantime, our current consensus estimate forecasts the revenue to be $479.86 million, indicating a 186.24% growth compared to the corresponding quarter of the prior year.
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.
It is also important to note the recent changes to analyst estimates for AeroVironment. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AeroVironment currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, AeroVironment is holding a Forward P/E ratio of 79.22. This expresses a premium compared to the average Forward P/E of 36.62 of its industry.
We can additionally observe that AVAV currently boasts a PEG ratio of 4.06. 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 2.11 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 57, positioning it in the top 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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