Has AeroVironment (AVAV) Outpaced Other Aerospace Stocks This Year?
The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. AeroVironment (AVAV) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.
AeroVironment is one of 48 companies in the Aerospace group. The Aerospace group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. AeroVironment is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AVAV's full-year earnings has moved 13.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, AVAV has gained about 9.4% so far this year. Meanwhile, the Aerospace sector has returned an average of -6.5% on a year-to-date basis. This means that AeroVironment is performing better than its sector in terms of year-to-date returns.
Another Aerospace stock, which has outperformed the sector so far this year, is TransDigm Group (TDG). The stock has returned 35.9% year-to-date.
In TransDigm Group's case, the consensus EPS estimate for the current year increased 6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, AeroVironment is a member of the Aerospace - Defense Equipment industry, which includes 22 individual companies and currently sits at #48 in the Zacks Industry Rank. This group has gained an average of 8.4% so far this year, so AVAV is performing better in this area. TransDigm Group is also part of the same industry.
Investors with an interest in Aerospace stocks should continue to track AeroVironment and TransDigm Group. These stocks will be looking to continue their solid performance.
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AeroVironment, Inc. (AVAV) : Free Stock Analysis Report
Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
