AeroVironment (AVAV) closed at $148.20 in the latest trading session, marking a -7.5% move from the prior day. This change lagged the S&P 500's 0.28% loss on the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq lost 0.77%.
Coming into today, shares of the maker of unmanned aircrafts had gained 7.16% in the past month. In that same time, the Aerospace sector gained 2.98%, while the S&P 500 gained 2.31%.
The investment community will be paying close attention to the earnings performance of AeroVironment in its upcoming release. The company is forecasted to report an EPS of $0.34, showcasing a 6.25% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $474.57 million, showing a 4.38% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.26 per share and revenue of $2.17 billion, which would represent changes of -1.51% and +9.78%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AeroVironment. These revisions help to show the ever-changing nature 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Currently, AeroVironment is carrying a Zacks Rank of #3 (Hold).
Investors should also note AeroVironment's current valuation metrics, including its Forward P/E ratio of 49.15. Its industry sports an average Forward P/E of 36.06, so one might conclude that AeroVironment is trading at a premium comparatively.
It's also important to note that AVAV currently trades at a PEG ratio of 5.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 2.39 based on yesterday's closing prices.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 32, putting it in the top 14% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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AeroVironment, Inc. (AVAV) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).