In the latest market close, AeroVironment (AVAV) reached $153.65, with a +1.29% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.01%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq gained 0.26%.

The the stock of maker of unmanned aircrafts has fallen by 13.34% in the past month, lagging the Aerospace sector's loss of 4.41% and the S&P 500's loss of 2.26%.

Investors will be eagerly watching for the performance of AeroVironment in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 4, 2025. The company's earnings per share (EPS) are projected to be $0.58, reflecting a 7.94% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $189.25 million, up 1.43% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.38 per share and a revenue of $811.51 million, representing 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 latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, AeroVironment holds a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, AeroVironment is currently exchanging hands at a Forward P/E ratio of 44.83. For comparison, its industry has an average Forward P/E of 29.32, which means AeroVironment is trading at a premium to the group.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 29% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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AeroVironment, Inc. (AVAV) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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