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Investor Insights

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.

Consensus
HOLD
Valuation
Overvalued
Similar
Roccat, RCAT
DON'T BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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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BUY ON WEAKNESS

Confusing. They just delivered record revenue, up 24% YOY and they won a 5-year contract with the US Army. The street expected higher guidance and not a reiteration, so shares are selling off.

WEAK BUY

Shares are slumping from its recent peak because the Pentagon feels that AVA is charging too much money. And it trades at a high 50x PE. That said, he likes it.

BUY

Good place for inexpensive military equipment. Would recommend it. 

COMMENT
This defence stock soared 38% last year because of the Russian war and has been rangebound since. The last quarter missed; they're not selling as man drones, etc. to Ukraine and they should
COMMENT
They report Tuesday. He wants to know if Washington has ordered more of their drones to fight Russia
WATCH
They sell drones, which could help solve the current delivery bottleneck. They report Tuesday. Keep an eye on them.
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AeroVironment (AVAV-Q) Rating

Ranking : 4 out of 5

Star iconStar iconStar iconStar iconStar empty icon

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 3

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 9

Stockchase rating for AeroVironment is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

AeroVironment (AVAV-Q) Frequently Asked Questions

What is AeroVironment stock symbol?

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

Is AeroVironment a buy or a sell?

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 .

Is AeroVironment a good investment or a top pick?

AeroVironment was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for AeroVironment .

Why is AeroVironment stock dropping?

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.

Is AeroVironment worth watching?

9 stock analysts on Stockchase covered AeroVironment In the last year. It is a trending stock that is worth watching.

What is AeroVironment stock price?

On 2025-04-18, AeroVironment (AVAV-Q) stock closed at a price of $147.89.