In the latest trading session, AeroVironment (AVAV) closed at $365.83, marking a -3.89% move from the previous day. The stock’s change was less than the S&P 500’s daily loss of 0.99%. Meanwhile, the Dow experienced a drop of 0.23%, and the technology-dominated Nasdaq saw a decrease of 1.58%.

Coming into today, shares of the maker of unmanned aircrafts had gained 9.99% in the past month. In that same time, the Aerospace sector gained 2.55%, while the S&P 500 gained 3.59%.

The investment community will be paying close attention to the earnings performance of AeroVironment in its upcoming release. It is anticipated that the company will report an EPS of $0.87, marking a 85.11% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $480.86 million, up 155.15% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.63 per share and revenue of $2.01 billion, which would represent changes of +10.67% and +145.48%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AeroVironment. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health 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.

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. Right now, AeroVironment possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, AeroVironment is holding a Forward P/E ratio of 104.79. This expresses a premium compared to the average Forward P/E of 35.33 of its industry.

Meanwhile, AVAV’s PEG ratio is currently 5.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Aerospace – Defense Equipment industry currently had an average PEG ratio of 2.46 as of yesterday’s close.

The Aerospace – Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 40% echelons of all 250+ industries.