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Is AeroVironment (AVAV) Stock Outpacing Its Aerospace Peers This Year?

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Investors focused on the Aerospace space have likely heard of AeroVironment (AVAV), but is the stock performing well in comparison to the rest of its sector peers? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.

AeroVironment is a member of our Aerospace group, which includes 37 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. AVAV is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for AVAV's full-year earnings has moved 12.89% 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 66.29% since the start of the calendar year. In comparison, Aerospace companies have returned an average of 5.24%. This means that AeroVironment is performing better than its sector in terms of year-to-date returns.

To break things down more, AVAV belongs to the Aerospace - Defense Equipment industry, a group that includes 21 individual companies and currently sits at #44 in the Zacks Industry Rank. Stocks in this group have gained about 5.70% so far this year, so AVAV is performing better this group in terms of year-to-date returns.

Going forward, investors interested in Aerospace stocks should continue to pay close attention to AVAV as it looks to continue its solid performance.


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