AeroVironment (AVAV) closed the most recent trading day at $52.44, moving -1.61% from the previous trading session. This move lagged the S&P 500's daily loss of 0.66%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 1%.
Coming into today, shares of the maker of unmanned aircrafts had lost 3.74% in the past month. In that same time, the Aerospace sector gained 2.23%, while the S&P 500 lost 1.1%.
Wall Street will be looking for positivity from AVAV as it approaches its next earnings report date. The company is expected to report EPS of $0.35, down 40.68% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $85.25 million, up 9.24% from the prior-year quarter.
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. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AVAV currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AVAV has a Forward P/E ratio of 34.84 right now. Its industry sports an average Forward P/E of 23.15, so we one might conclude that AVAV is trading at a premium comparatively.
Also, we should mention that AVAV has a PEG ratio of 1.39. 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. 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 industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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