AeroVironment (AVAV) Advances While Market Declines: Some Information for Investors

In the latest trading session, AeroVironment (AVAV) closed at $259.62, marking a +1.72% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.54% for the day. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 1.18%.

The stock of maker of unmanned aircrafts has fallen by 16.85% in the past month, lagging the Aerospace sector's gain of 1.03% and the S&P 500's gain of 0.58%.

The investment community will be closely monitoring the performance of AeroVironment in its forthcoming earnings report. The company is predicted to post an EPS of $0.7, indicating a 133.33% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $480.05 million, showing a 186.36% escalation compared to the year-ago quarter.

AVAV's full-year Zacks Consensus Estimates are calling for earnings of $3.4 per share and revenue of $1.99 billion. These results would represent year-over-year changes of +3.66% and +142.73%, respectively.

Investors might also notice recent changes to analyst estimates for AeroVironment. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.91% lower. Right now, AeroVironment possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, AeroVironment is holding a Forward P/E ratio of 75.13. This expresses a premium compared to the average Forward P/E of 37.75 of its industry.

We can also see that AVAV currently has a PEG ratio of 3.85. 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 average PEG ratio for the Aerospace - Defense Equipment industry stood at 2.3 at the close of the market yesterday.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 50, positioning it in the top 21% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.