In the latest close session, AeroVironment (AVAV) was down 3.86% at $174.14. The stock's performance was behind the S&P 500's daily loss of 0.69%. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq depreciated by 1.33%.
Shares of the maker of unmanned aircrafts have appreciated by 27.02% over the course of the past month, outperforming the Aerospace sector's gain of 8.2%, and the S&P 500's gain of 3.96%.
The investment community will be closely monitoring the performance of AeroVironment in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.34, marking a 6.25% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $474.57 million, up 4.38% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.26 per share and a revenue of $2.17 billion, indicating changes of -1.51% and +9.78%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for AeroVironment. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. At present, AeroVironment boasts a Zacks Rank of #3 (Hold).
Investors should also note AeroVironment's current valuation metrics, including its Forward P/E ratio of 55.56. This signifies a premium in comparison to the average Forward P/E of 36.84 for its industry.
We can also see that AVAV currently has a PEG ratio of 6.16. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.49 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AeroVironment, Inc. (AVAV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
