Is AeroVironment (AVAV) Outperforming Other Aerospace Stocks This Year?

·2 min read

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 a member of our Aerospace group, which includes 45 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the 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 4.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that AVAV has returned about 37.6% since the start of the calendar year. In comparison, Aerospace companies have returned an average of -4.5%. This means that AeroVironment is performing better than its sector in terms of year-to-date returns.

One other Aerospace stock that has outperformed the sector so far this year is Huntington Ingalls (HII). The stock is up 7.5% year-to-date.

In Huntington Ingalls' case, the consensus EPS estimate for the current year increased 2.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, AeroVironment belongs to the Aerospace - Defense Equipment industry, which includes 23 individual stocks and currently sits at #101 in the Zacks Industry Rank. Stocks in this group have lost about 3.1% so far this year, so AVAV is performing better this group in terms of year-to-date returns.

On the other hand, Huntington Ingalls belongs to the Aerospace - Defense industry. This 21-stock industry is currently ranked #209. The industry has moved -5.3% year to date.

Investors with an interest in Aerospace stocks should continue to track AeroVironment and Huntington Ingalls. These stocks will be looking to continue their solid performance.

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