The latest trading session saw AeroVironment (AVAV) ending at $161.96, denoting a +2% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 0.64%. On the other hand, the Dow registered a loss of 0.24%, and the technology-centric Nasdaq decreased by 0.74%.
Prior to today's trading, shares of the maker of unmanned aircrafts had gained 42.22% over the past month. This has outpaced the Aerospace sector's gain of 3.56% and the S&P 500's gain of 0.38% in that time.
The upcoming earnings release of AeroVironment will be of great interest to investors. On that day, AeroVironment is projected to report earnings of $1.44 per share, which would represent year-over-year growth of 234.88%. In the meantime, our current consensus estimate forecasts the revenue to be $243.67 million, indicating a 23.7% growth compared to the corresponding quarter of the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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 last 30 days, the Zacks Consensus EPS estimate has moved 1.45% higher. AeroVironment is currently a Zacks Rank #3 (Hold).
Digging into valuation, AeroVironment currently has a Forward P/E ratio of 35.9. For comparison, its industry has an average Forward P/E of 31.25, which means AeroVironment is trading at a premium to the group.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 26, positioning it in the top 11% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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AeroVironment, Inc. (AVAV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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