AeroVironment (AVAV) closed the most recent trading day at $93.88, moving +0.52% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 1.04%.
Heading into today, shares of the maker of unmanned aircrafts had lost 10.45% over the past month, lagging the Aerospace sector's loss of 9.68% and the S&P 500's loss of 6.28% in that time.
AVAV will be looking to display strength as it nears its next earnings release, which is expected to be December 4, 2018. The company is expected to report EPS of $0.16, down 44.83% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $74.83 million, up 1.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.36 per share and revenue of $307.72 million, which would represent changes of +25.93% and +2.95%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for AVAV. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AVAV is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, AVAV currently has a Forward P/E ratio of 68.92. For comparison, its industry has an average Forward P/E of 19.46, which means AVAV is trading at a premium to the group.
Meanwhile, AVAV's PEG ratio is currently 3.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.2 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 44, putting it in the top 17% 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.
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AeroVironment, Inc. (AVAV) : Free Stock Analysis Report
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