AeroVironment Stock Is Rising Monday: What's Driving The Action?

AeroVironment Inc AVAV shares are trading higher Monday after the United States Army lifted a stop work order related to a contract for the company’s Switchblade systems.

What Happened: The U.S. Army has lifted the stop work order it issued on the indefinite delivery, indefinite quantity contract related to AeroVironment’s Switchblade systems. The contract has a total ceiling value of $990 million.

AeroVironment said it can now work to fulfill the $128 million delivery order issued under the contract. The company noted that the lifting of the stop work order will not affect the U.S. Government Accountability Office's consideration of the protest filed earlier this month challenging the award of the contract to the company.

AeroVironment reported first-quarter earnings results earlier this month. The company said at the time that it continues to expect full-year 2025 revenue to be between $790 million and $820 million, and full-year adjusted earnings to be between $3.18 and $3.49 per share.

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Is AVAV A Good Stock To Buy?

When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future. AeroVironment has reported average annual revenue growth of 19.99% over the past five years.

It's also important to pay attention to valuation when deciding whether to buy a stock. AeroVironment has a forward P/E ratio of 57.8. This means investors are paying $57.8 for each dollar of expected earnings in the future. The average forward P/E ratio of AeroVironment's peers is 32.14.

Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index and valuation compared to peers. For in-depth analysis tools and important financial data, check out Benzinga PRO.

AVAV Price Action: AeroVironment shares were up 7.97% at $197.33 at the time of publication, according to Benzinga Pro.

Photo: courtesy of AeroVironment.