The latest trading session saw AeroVironment (AVAV) ending at $179.35, denoting a -1.54% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.36%.
The the stock of maker of unmanned aircrafts has risen by 12.36% in the past month, leading the Aerospace sector's gain of 4.66% and the S&P 500's gain of 4.19%.
Market participants will be closely following the financial results of AeroVironment in its upcoming release. On that day, AeroVironment is projected to report earnings of $0.58 per share, which would represent a year-over-year decline of 7.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $189.25 million, up 1.43% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.38 per share and revenue of $811.51 million, indicating changes of +13.04% and +13.23%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for AeroVironment. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, AeroVironment possesses a Zacks Rank of #3 (Hold).
In terms of valuation, AeroVironment is presently being traded at a Forward P/E ratio of 53.84. This denotes a premium relative to the industry's average Forward P/E of 30.79.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. With its current Zacks Industry Rank of 141, this industry ranks in the bottom 44% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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