In the latest market close, AeroVironment (AVAV) reached $175.04, with a -0.85% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.92%. Elsewhere, the Dow saw an upswing of 0.31%, while the tech-heavy Nasdaq appreciated by 2.03%.

Shares of the maker of unmanned aircrafts witnessed a gain of 13.77% over the previous month, beating the performance of the Aerospace sector with its gain of 2.1% and the S&P 500's gain of 0.81%.

The upcoming earnings release of AeroVironment will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.58, reflecting a 7.94% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue 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 $811.08 million, representing changes of +13.04% and +13.17%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AeroVironment presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that AeroVironment has a Forward P/E ratio of 52.18 right now. For comparison, its industry has an average Forward P/E of 29, which means AeroVironment is trading at a premium to the group.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 40% of all 250+ industries.

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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