AeroVironment (AVAV) Falls More Steeply Than Broader Market: What Investors Need to Know

In the latest trading session, AeroVironment (AVAV) closed at $365.83, marking a -3.89% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.99%. Meanwhile, the Dow experienced a drop of 0.23%, and the technology-dominated Nasdaq saw a decrease of 1.58%. Coming into today, shares of the maker of unmanned aircrafts had gained 9.99% in the past month. In that same time, the Aerospace sector gained 2.55%, while the S&P 500 gained 3.59%. The investment community will be paying close attention to the earnings performance of AeroVironment in its upcoming release. It is anticipated that the company will report an EPS of $0.87, marking a 85.11% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $480.86 million, up 155.15% from the year-ago period. For the full year, the Zacks Consensus Estimates are projecting earnings of $3.63 per share and revenue of $2.01 billion, which would represent changes of +10.67% and +145.48%, respectively, from the prior 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, AeroVironment possesses a Zacks Rank of #3 (Hold). Looking at its valuation, AeroVironment is holding a Forward P/E ratio of 104.79. This expresses a premium compared to the average Forward P/E of 35.33 of its industry. Meanwhile, AVAV's PEG ratio is currently 5.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense Equipment industry currently had an average PEG ratio of 2.46 as of yesterday's close. The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 40% echelons 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. Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks