This summary was created by AI, based on 4 opinions in the last 12 months.
AeroVironment (AVAV) has surprised some analysts with its performance despite the backdrop of increased defense spending due to ongoing conflicts. While the company reported a significant 24% year-over-year revenue increase and secured a five-year contract with the US Army, there is some critical sentiment regarding its high valuation. Trading at around 40-50 times earnings has raised concerns among investors about the sustainability of this premium price in light of potential slowing growth and political risks from the new US government policies affecting defense contracts. Experts are divided, with some suggesting a 'HOLD' position due to the uncertainty around future growth, particularly in the context of geopolitical developments, while others appreciate its role as a provider of military equipment.
AeroVironment is a American stock, trading under the symbol AVAV-Q on the NASDAQ (AVAV). It is usually referred to as NASDAQ:AVAV or AVAV-Q
In the last year, 9 stock analysts published opinions about AVAV-Q. 3 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for AeroVironment .
AeroVironment was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for AeroVironment .
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
9 stock analysts on Stockchase covered AeroVironment In the last year. It is a trending stock that is worth watching.
On 2025-04-18, AeroVironment (AVAV-Q) stock closed at a price of $147.89.
We are fairly surprised AVAV has not done better, considering the ongoing wars and the increased defense spending movement. It remains net debt free and good earnings growth is expected, just not as much as previously. At 40X earnings, investors are questioning its premium valuation in light of slowing growth. It is also in the cross hairs of the new US government, which recently issued 'stop work' orders on some contracts to foreign entities'. We would like to see it as a HOLD, but the political risk is hard to quantify. If the Ukraine War ends there will also likely be a sentiment shift (negative) towards its growth prospects. We would thus be OK letting this go.
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