In the latest close session, AeroVironment (AVAV) was down 6.05% at $264.63. The stock's performance was behind the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.9%.
Shares of the maker of unmanned aircrafts witnessed a loss of 9.76% over the previous month, trailing the performance of the Aerospace sector with its loss of 1.12%, and the S&P 500's loss of 1%.
Investors will be eagerly watching for the performance of AeroVironment in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.7, reflecting a 133.33% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $480.05 million, indicating a 186.36% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.4 per share and a revenue of $1.99 billion, indicating changes of +3.66% and +142.73%, respectively, from the former year.
Investors might also notice recent changes to 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 a 1.91% decrease. Right now, AeroVironment possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, AeroVironment is currently exchanging hands at a Forward P/E ratio of 82.91. This signifies a premium in comparison to the average Forward P/E of 37.29 for its industry.
It's also important to note that AVAV currently trades at a PEG ratio of 4.25. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense Equipment industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AVAV in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AeroVironment, Inc. (AVAV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
