AeroVironment (AVAV) closed the most recent trading day at $364.28, moving +2.56% from the previous trading session. The stock’s change was more than the S&P 500’s daily gain of 0.58%. Elsewhere, the Dow saw an upswing of 0.31%, while the tech-heavy Nasdaq appreciated by 0.89%.
Shares of the maker of unmanned aircrafts witnessed a gain of 17.8% over the previous month, beating the performance of the Aerospace sector with its gain of 0.88%, and the S&P 500’s gain of 0.16%.
The investment community will be paying close attention to the earnings performance of AeroVironment in its upcoming release. The company’s earnings per share (EPS) are projected to be $0.87, reflecting a 85.11% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $480.86 million, up 155.15% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.51 per share and revenue of $2.01 billion, indicating changes of +7.01% and +145.48%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for AeroVironment. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, AeroVironment holds a Zacks Rank of #3 (Hold).
From a valuation perspective, AeroVironment is currently exchanging hands at a Forward P/E ratio of 101.19. This indicates a premium in contrast to its industry’s Forward P/E of 34.4.
Meanwhile, AVAV’s PEG ratio is currently 6.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Aerospace – Defense Equipment industry had an average PEG ratio of 2.46 as trading concluded yesterday.
The Aerospace – Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 40% of all 250+ industries.
