AeroVironment Stock Dips While Market Gains: Key Facts

The most recent trading session ended with AeroVironment AVAV standing at $189.80, reflecting a -0.34% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.97%. Meanwhile, the Dow experienced a rise of 0.58%, and the technology-dominated Nasdaq saw an increase of 1.39%.

Prior to today's trading, shares of the maker of unmanned aircrafts had gained 15.96% over the past month. This has outpaced the Aerospace sector's gain of 5.45% and the S&P 500's loss of 1.85% in that time.

Investors will be eagerly watching for the performance of AeroVironment in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.61, marking a 39% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $184.26 million, indicating a 20.94% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.41 per share and a revenue of $813.75 million, signifying shifts of +14.05% and +13.54%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AeroVironment. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AeroVironment is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, AeroVironment is currently exchanging hands at a Forward P/E ratio of 55.9. This signifies a premium in comparison to the average Forward P/E of 29.3 for its industry.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.

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