AeroVironment (AVAV) stock closed at $177.76 in the latest trading session, marking a slight increase of 0.21% from the previous day. This performance outpaced the S&P 500’s daily gain of 0.16%. The Dow gained 0.02%, while the tech-heavy Nasdaq rose 0.16%. Looking back, shares of the unmanned aircraft maker had risen 1.28% over the past month. During the same period, the Aerospace sector gained 2.37%, while the S&P 500 climbed 2.97%.
Investors are eagerly awaiting AeroVironment’s upcoming earnings release, scheduled for September 4, 2024. Analysts anticipate earnings of $0.61 per share, representing a year-over-year decline of 39%. However, they are forecasting revenue of $184.26 million, a 20.94% increase from the previous year’s quarter.
For the full year, analysts expect earnings of $3.41 per share and revenue of $813.75 million. These figures represent increases of 14.05% and 13.54%, respectively, compared to the previous year.
Investors should pay attention to recent modifications in analyst estimates for AeroVironment. These revisions often reflect evolving near-term business trends. Positive changes in estimates generally indicate analysts’ confidence in the company’s financial health and profitability. Empirical research suggests that these estimate revisions are closely tied to upcoming stock price performance.
The Zacks Rank, a unique model that incorporates these estimate changes, provides a practical rating system for investors. The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a proven track record of outperformance, with #1 ranked stocks achieving an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate for AeroVironment has remained unchanged. Currently, AeroVironment holds a Zacks Rank of #2 (Buy).
Investors should also consider AeroVironment’s current valuation metrics. Its Forward P/E ratio of 52.07 represents a premium compared to the average Forward P/E of 30.25 for the Aerospace – Defense Equipment industry, which is part of the broader Aerospace sector. This industry currently holds a Zacks Industry Rank of 59, placing it in the top 24% of all 250+ industries. The Zacks Industry Rank evaluates the strength of industry groups by calculating the average Zacks Rank of the individual stocks within them. Our research indicates that top-ranked industries outperform the bottom half by a factor of 2 to 1.
