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The latest trading session saw AeroVironment (AVAV) ending at $163.04, denoting a -0.42% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 1.11%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 1.89%.
Shares of the maker of unmanned aircrafts have appreciated by 2.06% over the course of the past month, outperforming the Aerospace sector's loss of 4.28% and the S&P 500's loss of 1.7%.
Investors will be eagerly watching for the performance of AeroVironment in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.58, showcasing a 7.94% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $189.25 million, indicating a 1.43% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.38 per share and revenue of $811.51 million, which would represent changes of +13.04% and +13.23%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AeroVironment. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. AeroVironment currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AeroVironment has a Forward P/E ratio of 48.39 right now. This represents a premium compared to its industry's average Forward P/E of 29.95.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.