Is AeroVironment (AVAV) Stock Outpacing Its Aerospace Peers 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? 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 one of 48 individual stocks in the Aerospace sector. Collectively, these companies sit at #11 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).
Within the past quarter, the Zacks Consensus Estimate for AVAV's full-year earnings has moved 34.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that AVAV has returned about 16.8% since the start of the calendar year. Meanwhile, the Aerospace sector has returned an average of -2.7% on a year-to-date basis. As we can see, AeroVironment is performing better than its sector in the calendar year.
Another stock in the Aerospace sector, VirTra, Inc. (VTSI), has outperformed the sector so far this year. The stock's year-to-date return is 71.2%.
For VirTra, Inc. the consensus EPS estimate for the current year has increased 200% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, AeroVironment is a member of the Aerospace - Defense Equipment industry, which includes 22 individual companies and currently sits at #170 in the Zacks Industry Rank. On average, this group has gained an average of 3.7% so far this year, meaning that AVAV is performing better in terms of year-to-date returns.
On the other hand, VirTra, Inc. belongs to the Electronics - Military industry. This 1-stock industry is currently ranked #1. The industry has moved +71.2% year to date.
Investors with an interest in Aerospace stocks should continue to track AeroVironment and VirTra, Inc. These stocks will be looking to continue their solid performance.
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AeroVironment, Inc. (AVAV) : Free Stock Analysis Report
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