AeroVironment (AVAV) closed the most recent trading day at $176.38, moving -0.99% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.56%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.51%.
Prior to today's trading, shares of the maker of unmanned aircrafts had gained 16.25% over the past month. This has outpaced the Aerospace sector's gain of 11.42% and the S&P 500's gain of 7.37% in that time.
Investors will be eagerly watching for the performance of AeroVironment in its upcoming earnings disclosure. The company is expected to report EPS of $1.44, up 234.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $243.67 million, up 23.7% from the prior-year quarter.
Any recent changes to analyst estimates for AeroVironment should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 has shifted 6.63% downward. Currently, AeroVironment is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AeroVironment has a Forward P/E ratio of 43.13 right now. This valuation marks a premium compared to its industry's average Forward P/E of 34.83.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 20% echelons of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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