AeroVironment (AVAV) closed at $193.81 in the latest trading session, marking a -1.13% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.26%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.54%.
Heading into today, shares of the maker of unmanned aircrafts had gained 36.63% over the past month, outpacing the Aerospace sector's gain of 4.77% and the S&P 500's gain of 2.13%.
The investment community will be paying close attention to the earnings performance of AeroVironment in its upcoming release. On that day, AeroVironment is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 6.25%. In the meantime, our current consensus estimate forecasts the revenue to be $474.57 million, indicating a 4.38% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.26 per share and a revenue of $2.17 billion, signifying shifts of -1.51% and +9.78%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for AeroVironment. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4% lower. At present, AeroVironment boasts a Zacks Rank of #3 (Hold).
In terms of valuation, AeroVironment is currently trading at a Forward P/E ratio of 60.13. This denotes a premium relative to the industry average Forward P/E of 35.98.
Meanwhile, AVAV's PEG ratio is currently 6.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Aerospace - Defense Equipment industry had an average PEG ratio of 2.53.
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 Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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AeroVironment, Inc. (AVAV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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