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AeroVironment (AVAV) Stock Moves -0.7%: What You Should Know

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AeroVironment (AVAV - Free Report) closed at $52.54 in the latest trading session, marking a -0.7% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.73%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 1.32%.

Prior to today's trading, shares of the maker of unmanned aircrafts had lost 5.06% over the past month. This has lagged the Aerospace sector's loss of 0.46% and the S&P 500's loss of 0.27% in that time.

Investors will be hoping for strength from AVAV as it approaches its next earnings release. In that report, analysts expect AVAV to post earnings of $0.35 per share. This would mark a year-over-year decline of 40.68%. Our most recent consensus estimate is calling for quarterly revenue of $85.25 million, up 9.24% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.53 per share and revenue of $359.58 million, which would represent changes of -12.07% and +14.42%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for AVAV. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. AVAV currently has a Zacks Rank of #4 (Sell).

Digging into valuation, AVAV currently has a Forward P/E ratio of 34.58. For comparison, its industry has an average Forward P/E of 23.13, which means AVAV is trading at a premium to the group.

Also, we should mention that AVAV has a PEG ratio of 1.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense Equipment industry currently had an average PEG ratio of 2.25 as of yesterday's close.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 94, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow AVAV in the coming trading sessions, be sure to utilize Zacks.com.


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