AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments. The company supplies UAS, TMS, unmanned ground vehicle, and related services primarily to organizations within the U.S. Department of Defense, other federal agencies, and to international allied governments. It also designs, engineers, tools, and manufactures unmanned aerial and aircraft systems, including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems. In addition, the company offers small UAS products, including training, spare parts, product repair, product replacement, and the customer contracted operation. Further, it develops high-altitude pseudo-satellite UAS systems. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Arlington, Virginia.

У AeroVironment баланс выглядит крепко, но качество прибыли и оценка пока не подтверждают текущую рыночную цену. Ликвидность очень сильная: quick ratio 4.29 и current ratio 5.08 заметно выше отраслевых ориентиров, а cash on hand 588 млн долл. создаёт запас прочности. Долговая нагрузка умеренная и лучше медианы сектора: debt/equity 0.17, при этом долгосрочный долг 727 млн долл. уже вырос, поэтому риск по балансу не нулевой. С другой стороны, мультипликатор price/sales 10.59 выглядит крайне высоким относительно отрасли и указывает на дорогую выручку, тогда как price/book 2.09 уже выглядит более сдержанно. Показатели рентабельности сейчас слабые: ROE, ROA, ROI, operating margin и net profit margin равны нулю в TTM, что означает отсутствие устойчивой операционной отдачи на капитал. Исторически маржа была лучше, но динамика ухудшилась: gross margin снизилась с почти 40% до 24.71%, а operating margin и net margin просели до нуля. При этом выручка за TTM 408 млн долл. выше отраслевой медианы и бизнес по масштабу растёт, а gross profit и EBITDA остаются положительными. EPS 0.32 и прогноз EPS 0.34 выглядят скромно для текущей цены, а P/E и P/FCF не дают надёжной опоры для переоценки в плюс из-за нестабильности базы прибыли и денежного потока. Собственный капитал 4.42 млрд долл. и net worth 9.20 выглядят сильными, но это не компенсирует слабую текущую доходность на капитал. В сумме фундаментал скорее нейтрален к умеренно негативному: баланс и ликвидность поддерживают оценку, но дорогая выручка, сжатие маржи и слабая рентабельность ограничивают потенциал роста. Для инвестора это означает, что акция выглядит качественной по балансу, но текущая цена уже учитывает значительную часть ожиданий, поэтому пространство для дальнейшего апсайда ограничено.

AeroVironment, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Сильный баланс и ликвидность AVAV сочетаются с высокой оценкой по выручке и слабой текущей рентабельностью, поэтому фундаментал скорее умеренно сдерживает цену.

Kratos Defense & Security Solutions, Inc.’s KTOS shares have lost 6% in the past month against the Zacks Aerospace-Defense Equipment industry’s growth of 12.7%. The company remains a key provider of unmanned target drones and is extending its reach across hypersonics, rocket systems, engines and satellite communications.
Image Source: Zacks Investment Research
Other defense equipment stocks have shown mixed performance over the past month. While AeroVironment AVAV has gained 5.4%, Teledyne Technologies TDY declined 3.1%. AeroVironment combines autonomous flight technologies, AI-enabled systems and integrated command-and-control software to enhance targeting precision and mission effectiveness. Teledyne Technologies is experiencing solid defense-sector demand, especially in Europe, amid increasing regional military expenditures.
Given Kratos Defense’s underperformance relative to its industry peers, investors may be wondering about the stock’s next move. Let’s examine the key factors shaping its outlook and assess whether the shares present an attractive investment opportunity.
Tailwinds for KTOS Stock
Kratos Defense serves the defense industry through a portfolio that includes target drones, rocket systems and solid rocket motors (SRMs), hypersonic vehicles, jet engines for drones and missiles, and virtualized ground systems for satellites. Management noted that the Department of Defense intends to deploy the full $156 billion in reconciliation-related defense funding during 2026, including investments in areas aligned with several KTOS programs. Reflecting strong demand, first-quarter 2026 consolidated bookings totaled $605.2 million, representing a book-to-bill ratio of 1.6, while the company's bid-and-proposal pipeline expanded to $14.3 billion as of March 29, 2026.
Kratos Defense is the leading provider of unmanned aerial target drone systems to the U.S. Air Force, Navy, Army and several allied defense organizations. This strong market position has helped secure multiple recent contract wins and strategic partnerships that are expanding the company’s footprint in the global unmanned aircraft systems (UAS) market, including a Counter-UAS contract awarded in March 2026 and collaboration efforts related to the XQ-58A Valkyrie.
KTOS continues to cite demand for its hypersonic vehicle programs, including Erinyes and DarkFury, as well as ongoing development efforts within its Ghost Works organization. The company also reported solid organic growth across several Kratos Government Solutions businesses, including Defense Rocket Systems, Turbine Technologies and Microwave Products. Reflecting this momentum, Kratos Government Solutions revenues increased to $288.4 million in first-quarter 2026 from $239.5 million in the year-ago period.
In April 2026, Kratos Defense secured an Other Transaction Agreement with a total potential value of up to $446.8 million, subject to the exercise of all options. Under the agreement, the company will lead the development and integration of ground infrastructure required to operate resilient missile-warning and missile-tracking satellites in medium Earth orbit, including systems capable of detecting advanced threats such as hypersonic missiles. The award further strengthens Kratos Defense's position as a prime contractor in the growing space-based missile defense market.
Headwinds for KTOS
Kratos Defense continues to identify supply-chain disruptions and component availability constraints as industrywide challenges that can delay material receipts and deliveries. The company’s 2026 outlook explicitly assumes potential manufacturing and supply chain disruptions, parts shortages and continued cost increases. If these pressures persist or intensify, they could weigh on margins, disrupt execution and keep cash conversion below investor expectations.
Estimates for KTOS Stock
The Zacks Consensus Estimate for 2026 and 2027 earnings per share (EPS) indicates an increase of 32.73% and 41.29%, respectively, year over year.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AeroVironment’s fiscal 2027 EPS indicates an increase of 26.94% year over year. The consensus estimate for Teledyne Technologies' 2026 and 2027 EPS implies an increase of 9.19% and 8.09%, respectively, year over year.
KTOS’ Earnings Surprise History
The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 22.64%.
Image Source: Zacks Investment Research
KTOS’ Return on Equity Lower Than Industry
The company’s trailing 12-month return on equity of 4.3% is lower than the industry average of 12.49%. Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.
Image Source: Zacks Investment Research
KTOS Stock Trades at a Discount
In terms of valuation, KTOS’ forward 12-month price/sales (P/S) is 5.84X, a discount to the industry’s average of 12.75X.
Image Source: Zacks Investment Research
What Should an Investor Do Now?
Kratos Defense supplies unmanned systems, rocket and hypersonic technologies, propulsion, and space-related ground systems, while benefiting from strong demand across U.S. defense and allied programs. Recent contract wins, a growing order pipeline, and expanding roles in missile-warning satellite infrastructure and advanced defense technologies have strengthened its position in both defense and space-based security markets.
Given its poor ROE and price underperformance, new investors may wait for a better entry point. Investors who already own this Zacks Rank #3 (Hold) stock may consider retaining their position, supported by the company’s strong earnings growth outlook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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KTOS Stock Declines 6% in a Month: Opportunity or Warning Sign?

AeroVironment (AVAV) shares ended the last trading session 18.3% higher at $214.39. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.2% loss over the past four weeks.
AeroVironment benefits from autonomous military strike systems, including Switchblade loitering munitions and Red Dragon attack drones, along with counter-drone and electronic warfare technologies. By combining AI-enabled autonomy, precision targeting, and command-and-control software, the company is positioned to benefit from rising demand for portable, rapidly deployable precision warfare systems.
The new $20 million Air Force Research Laboratory contract strengthens AeroVironment beyond its traditional drone and loitering-munition business by expanding its role in advanced defense materials and aerospace R&D. This creates a new high-margin research revenue stream and deepens long-term relationships with the U.S. Air Force and Space Force.
This maker of unmanned aircrafts is expected to post quarterly earnings of $1.53 per share in its upcoming report, which represents a year-over-year change of -5%. Revenues are expected to be $566.61 million, up 106% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For AeroVironment, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AVAV going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
AeroVironment is a member of the Zacks Aerospace - Defense Equipment industry. One other stock in the same industry, Teledyne Technologies (TDY), finished the last trading session 3.5% higher at $634.06. TDY has returned -2.9% over the past month.
Teledyne's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $5.79. Compared to the company's year-ago EPS, this represents a change of +11.4%. Teledyne currently boasts a Zacks Rank of #2 (Buy).
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AeroVironment (AVAV) Moves 18.3% Higher: Will This Strength Last?

Key Points
They included a fresh government investment and a new contract with the Air Force.
As if that weren't enough, it seems the White House wants to directly buy into its industry.
The past few days have been eventful for drone maker AeroVironment (NASDAQ: AVAV) and, consequently, there's been plenty of action in its stock. These were generally positive and helped push the company's equity up by 23% week to date as of Friday before market open.
Rising like one of its drones
On Tuesday, Aerovironment announced that the federal government had approved a new $20.2 million investment to expand the company's factory in Huntsville, Alabama. These funds are to be used to increase the output of its Freedom Eagle-1 (FE-1), an unmanned aircraft system missile.
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Two days later, AeroVironment revealed that it's been awarded a $20 million contract by a research arm of the Air Force. This is to be devoted to research on next-generation ceramic and ceramic matrix composite materials for "extreme" use cases in defense and aerospace technology.
The most powerful catalyst for the stock over the week also occurred on Thursday. The Wall Street Journal reported that the Trump administration aims to invest in drone companies to boost the domestic industry. Another goal would be to lower the costs of such goods.
Citing unnamed "people familiar with the matter," the Journal wrote that this effort is in a discussion phase. Those sources said that companies being considered for investment include Unusual Machines (which, incidentally, has Donald Trump Jr. as a shareholder and member of its advisory board) and an early stage enterprise, Neros Technologies.
Inclusion despite exclusion
AeroVironment wasn't identified as one of those drone companies, but that was hardly necessary for it to become a hot stock. Even if the company doesn't get a dollar of federal money, it's sure to gain simply by being inside a sector favored by this country's executive branch.
At this point, though, the federal investments are speculation. That grant for the factory and the new Air Force contract, however, are concrete developments heightening AeroVironment's prominence at a time when drones are popular. I think that alone should be enough to inspire any investor to consider buying the stock.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why AeroVironment Stock Was Soaring This Week

The S&P 500 Index ($SPX) (SPY) on Thursday closed up +0.58%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.05%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.84%. June E-mini S&P futures (ESM26) rose +0.59%, and June E-mini Nasdaq futures (NQM26) rose +0.88%.
Stock indexes recovered from early losses on Thursday and settled higher, with the S&P 500 and Nasdaq 100 climbing to new all-time highs. Stocks rebounded after Axios reported that the US and Iran reached a deal to extend the ceasefire for sixty days and for negotiations to start on Iran's nuclear program, with President Trump still needing to approve the terms. The memorandum of understanding would state that shipping through the Strait of Hormuz would be "unrestricted," with Iran required to remove all mines from the strait within 30 days. Crude oil prices gave up a +3% advance on the news.
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Stocks initially moved lower on Thursday after fresh US attacks on Iran boosted crude oil prices and fueled doubt over whether an end to the war is imminent. The US struck Iranian military targets for the second time this week, and Kuwait said it responded to Iranian missile and drone threats.
Stocks also found support on Thursday amid Fed-friendly US economic news. The Apr core PCE price index, the Fed's preferred inflation gauge, rose as expected. Also, April capital goods new orders unexpectedly declined, weekly jobless claims rose more than expected, and Q1 GDP was revised downward. In addition, Apr new home sales fell more than expected. The 10-year T-note yield gave up an early advance and is down -2 bp to 4.46%.
US weekly initial unemployment claims rose by +5,000 to 215,000, showing a weaker labor market than expectations of 211,000.
US Apr personal spending rose +0.5% m/m, right on expectations. Apr personal income was unchanged m/m, weaker than expectations of +0.4% m/m.
The US Apr core PCE price index, the Fed's preferred inflation gauge, rose +3.3% y/y, right on expectations and the largest increase in 2.5 years.
US Apr capital goods new orders nondefense ex-aircraft and parts unexpectedly fell -1.1% m/m versus expectations of a +0.4% m/m increase and the biggest decline in a year.
US Q1 GDP was revised downward to +1.6% (q/q annualized), weaker than expectations of no change at +2.0%. Q1 personal consumption was revised lower to +1.4% from the previously reported +1.6%, and the Q1 core PCE price index was revised upward to a 3-year high of +4.4% from the previously reported +4.3%.
US Apr new home sales fell -6.2% m/m to 622,000, weaker than expectations of 660,000.
Hawkish Fed comments were negative for stocks and bonds. Fed Governor Lisa Cook said inflation is headed in the wrong direction and she would be prepared to raise interest rates if that persists. Also, Minneapolis Fed President Neel Kashkari said US consumer prices are still "much too high" and that bringing down inflation remains his top priority. In addition, St. Louis Fed President Alberto Musalem said inflation is meaningfully above target, expectations are rising, and the Fed should respond to higher real rates by hiking policy.
Crude oil prices gave up a +3% advance on Thursday and finished only slightly higher after Axios reported that the US and Iran have reached a preliminary agreement to extend the ceasefire for 60 days and begin negotiations on Iran’s nuclear program. Crude prices initially jumped on Thursday after US forces shot down four Iranian drones fired at a commercial ship and hit a launch site near the Strait of Hormuz. Also, the US Treasury added Iran's Persian Gulf Strait Authority to its Iran-related sanctions list to prevent Iran from profiting from vessels transiting the Strait of Hormuz by charging tolls. In addition, Israel stepped up attacks on Lebanon and said its ground forces would move further into the country, potentially complicating US-Iran talks on an interim peace deal.
The markets are discounting a 0% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.
The generally favorable Q1 earnings season is winding down. As of Thursday, 83% of the 482 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets settled mixed on Thursday. The Euro Stoxx 50 closed down -0.25%. China's Shanghai Composite recovered from a 5-week low and closed up +0.12%. Japan's Nikkei Stock Average closed down -0.47%.
Interest Rates
June 10-year T-notes (ZNM6) on Thursday closed up +4.5 ticks. The 10-year T-note yield fell -2.8 bp to 4.455%. Jun T-note prices recovered from early losses and climbed to a 2-week high, and the 10-year T-note yield fell to a 2-week low of 4.432%. T-notes moved higher Thursday on Fed-friendly economic news. Weekly jobless claims rose more than expected, Apr core capital goods orders unexpectedly declined, Q1 GDP was revised lower, and the Apr core PCE price index, the Fed's preferred inflation gauge, rose as expected. Also, Apr new home sales fell more than expected. T-notes maintained their gains on solid demand for the Treasury’s $44 billion auction of 7-year T-notes that had a bid-to-cover ratio of 2.52, better than the 10-auction average of 2.50.
T-notes initially moved lower on Thursday after WTI crude oil prices rose more than +3%, which raised inflation expectations. Also, hawkish comments from Fed Governor Lisa Cook, St. Louis Fed President Alberto Musalem, and Minneapolis Fed President Neel Kashkari undercut T-note prices, as they expressed concern about persistently high inflation.
European government bond yields moved lower on Thursday. The 10-year German Bund yield fell -2.5 bp to 2.962%. The 10-year UK gilt yield fell to a 5-week low of 4.791% and finished down -4.4 bp to 4.814%.
The Eurozone May economic sentiment indicator rose +0.3 to 93.5, stronger than expectations of no change at 93.0.
ECB Chief Economist Philip Lane said the impact of the Iran war will take longer to show in the labor market, and the "second round" of the energy shock on the Eurozone will persist for a while.
Swaps are discounting an 89% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Chipmakers and AI-infrastructure stocks rallied on Thursday to lead the broader market higher. ARM Holdings Plc (ARM) closed up more than +11%, and Advanced Micro Devices (AMD) and Qualcomm (QCOM) closed up more than +4%. Also, Sandisk (SNDK) and Marvell Technology (MRVL) closed up more than +3%, and Seagate Technology Holdings Plc (STX) and Broadcom (AVGO) closed up more than +1%.
Drone-related stocks surged on Thursday after the Wall Street Journal reported the Trump administration is exploring funding deals with a group of drone companies. Unusual Machines (UMAC) closed up more than +59%, and Red Cat (RCAT) closed up more than +34%. Also, AIRO Group Holdings (AIRO) closed up more than +21%, and AeroVironment (AVAV) and Kratos Defense & Security Solutions (KTOS) closed up more than +14%.
Snowflake (SNOW) closed up more than +36% after reporting Q1 revenue of $1.39 billion, better than the consensus of $1.33 billion and raising its 2027 product revenue forecast to $5.84 billion from a previous estimate of $5.66 billion, well above the consensus of $5.68 billion.
Dollar Tree (DLTR) closed up more than +17% to lead gainers in the S&P 500 after reporting Q1 adjusted EPS of $1.74, stronger than the consensus of $1.55, and raising its 2027 adjusted EPS estimate to $6.70 to $7.10 from a previous estimate of $6.50 to $6.90, above the consensus of $6.69.
Agilent (A) closed up more than +16% after raising its full-year revenue forecast to $7.39 billion-$7.49 billion from a previous estimate of $7.3 billion-$7.5 billion yuan, above the consensus of $7.39 billion.
Best Buy (BBY) closed up more than +15% after forecasting Q2 comparable sales up +1.00%, stronger than the consensus of down -0.32%.
Hormel Foods (HRL) closed up more than +12% after reporting Q2 adjusted operating margin of 9.9%, stronger than the consensus of 8.9%.
Heico (HEI) closed up more than +11% after reporting Q2 net sales of $1.38 billion, well above the consensus of $1.25 billion.
Cargurus Inc (CARG) closed up more than +4% after Barclays initiated coverage on the stock with a recommendation of overweight and a price target of $35.
Photronics (PLAB) closed down more than -36% after forecasting Q3 adjusted EPS of 39 cents to 45 cents, weaker than the consensus of 54 cents.
Symbotic (SYM) closed down more than -9% after Softbank Group is said to sell 5.6 million shares of its holdings of SYM in an unregistered block trade between $51 and $53.63 a share.
Tyson Foods (TSN) closed down more than -6% after announcing that CEO King will step down after five years.
Trade Desk (TTD) closed down more than 5% after Rothschild & Co Redburn reinstated coverage of the stock with a sell recommendation and a price target of $11.
HP Inc. (HPQ) closed down more than -2% after lowering the upper end of its full-year EPS estimate to $2.90-$3.10 from a previous view of $2.90-$3.20, citing rising memory and storage costs.
Earnings Reports(5/29/2026)
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On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

S&P 500 and Nasdaq 100 Post Record Highs on US-Iran Truce Reports

The S&P 500 Index ($SPX) (SPY) today is up +0.44%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.01%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.62%. June E-mini S&P futures (ESM26) are up +0.33%, and June E-mini Nasdaq futures (NQM26) are up +0.55%.
Stock indexes recovered from early losses and are trading mixed, with the S&P 500 and Nasdaq 100 climbing to new all-time highs. Stocks rebounded after Axios reported that the US and Iran reached a deal to extend the ceasefire for sixty days and for negotiations to start on Iran's nuclear program, with President Trump still needing to approve the terms. The memorandum of understanding would state that shipping through the Strait of Hormuz would be "unrestricted," with Iran required to remove all mines from the strait within 30 days. Crude oil prices gave up a +3% advance and are up +1% on the news.
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Stocks initially moved lower today after fresh US attacks on Iran boosted crude oil prices and fueled doubt over whether an end to the war is imminent. The US struck Iranian military targets for the second time this week, and Kuwait said it responded to Iranian missile and drone threats.
Stocks also found support amid Fed-friendly US economic news. The Apr core PCE price index, the Fed's preferred inflation gauge, rose as expected. Also, April capital goods new orders unexpectedly declined, weekly jobless claims rose more than expected, and Q1 GDP was revised downward. In addition, Apr new home sales fell more than expected. The 10-year T-note yield gave up an early advance and is down -2 bp to 4.46%.
US weekly initial unemployment claims rose by +5,000 to 215,000, showing a weaker labor market than expectations of 211,000.
US Apr personal spending rose +0.5% m/m, right on expectations. Apr personal income was unchanged m/m, weaker than expectations of +0.4% m/m.
The US Apr core PCE price index, the Fed's preferred inflation gauge, rose +3.3% y/y, right on expectations and the largest increase in 2.5 years.
US Apr capital goods new orders nondefense ex-aircraft and parts unexpectedly fell -1.1% m/m versus expectations of a +0.4% m/m increase and the biggest decline in a year.
US Q1 GDP was revised downward to +1.6% (q/q annualized), weaker than expectations of no change at +2.0%. Q1 personal consumption was revised lower to +1.4% from the previously reported +1.6%, and the Q1 core PCE price index was revised upward to a 3-year high of +4.4% from the previously reported +4.3%.
US Apr new home sales fell -6.2% m/m to 622,000, weaker than expectations of 660,000.
Hawkish Fed comments are also weighing on stocks and bonds. Fed Governor Lisa Cook said inflation is headed in the wrong direction and she would be prepared to raise interest rates if that persists. Also, Minneapolis Fed President Neel Kashkari said US consumer prices are still "much too high" and that bringing down inflation remains his top priority. In addition, St. Louis Fed President Alberto Musalem said inflation is meaningfully above target, expectations are rising, and the Fed should respond to higher real rates by hiking policy.
Crude oil prices gave up a +3% advance today and are up +1% after Axios reported that the US and Iran have reached a preliminary agreement to extend the ceasefire for 60 days and begin negotiations on Iran’s nuclear program. Crude prices initially jumped today after US forces shot down four Iranian drones fired at a commercial ship and hit a launch site near the Strait of Hormuz. Also, the US Treasury added Iran's Persian Gulf Strait Authority to its Iran-related sanctions list to prevent Iran from profiting from vessels transiting the Strait of Hormuz by charging tolls. In addition, Israel stepped up attacks on Lebanon and said its ground forces would move further into the country, potentially complicating US-Iran talks on an interim peace deal.
The markets are discounting a 3% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.
The generally favorable Q1 earnings season is winding down. As of today, 83% of the 479 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.27%. China's Shanghai Composite recovered from a 5-week low and closed up +0.12%. Japan's Nikkei Stock Average closed down -0.47%.
Interest Rates
June 10-year T-notes (ZNM6) today are up +4 ticks. The 10-year T-note yield is down -2.6 bp to 4.456%. Jun T-note prices recovered from early losses and climbed to a 2-week high, and the 10-year T-note yield fell to a 2-week low of 4.432%. T-notes moved higher on Fed-friendly economic news. Weekly jobless claims rose more than expected, Apr core capital goods orders unexpectedly declined, Q1 GDP was revised lower, and the Apr core PCE price index, the Fed's preferred inflation gauge, rose as expected. Also, Apr new home sales fell more than expected.
T-notes initially moved lower today after WTI crude oil prices rose more than +3%, which raised inflation expectations. Also, hawkish comments from Fed Governor Lisa Cook, St. Louis Fed President Alberto Musalem, and Minneapolis Fed President Neel Kashkari undercut T-note prices, as they expressed concern about persistently high inflation. In addition, supply pressures are negative for T-notes as the Treasury will auction $44 billion of 7-year T-notes later today.
European government bond yields are moving lower today. The 10-year German Bund yield is down -2.9 bp to 2.957%. The 10-year UK gilt yield fell to a 5-week low of 4.791% and is down -4.6 bp to 4.812%.
The Eurozone May economic sentiment indicator rose +0.3 to 93.5, stronger than expectations of no change at 93.0.
ECB Chief Economist Philip Lane said the impact of the Iran war will take longer to show in the labor market, and the "second round" of the energy shock on the Eurozone will persist for a while.
Swaps are discounting a 90% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Chipmakers and AI-infrastructure stocks are rallying today to lead the broader market higher. ARM Holdings Plc (ARM) is up more than +13% to lead gainers in the Nasdaq 100, and Sandisk (SNDK) is up more than +5%. Also, Advanced Micro Devices (AMD) is up more than +4%, and Western Digital (WDC) is up more than +2%. In addition, Seagate Technology Holdings Plc (STX), Micron Technology (MU), Applied Materials (AMAT), NXP Semiconductors NV (NXPI), and ASML Holding NV (ASML) are up more than +1%.
Drone-related stocks are rallying today after the Wall Street Journal reported the Trump administration is exploring funding deals with a group of drone companies. Unusual Machines (UMAC) is up more than +46%, and Red Cat (RCAT) is up more than +25%. Also, AIRO Group Holdings (AIRO) is up more than +18%, and AeroVironment (AVAV) and Kratos Defense & Security Solutions (KTOS) are up more than +14%.
Snowflake (SNOW) is up more than +33% after reporting Q1 revenue of $1.39 billion, better than the consensus of $1.33 billion and raising its 2027 product revenue forecast to $5.84 billion from a previous estimate of $5.66 billion, well above the consensus of $5.68 billion.
Dollar Tree (DLTR) is up more than +17% to lead gainers in the S&P 500 after reporting Q1 adjusted EPS of $1.74, stronger than the consensus of $1.55, and raising its 2027 adjusted EPS estimate to $6.70 to $7.10 from a previous estimate of $6.50 to $6.90, above the consensus of $6.69.
Agilent (A) is up more than +16% after raising its full-year revenue forecast to $7.39 billion-$7.49 billion from a previous estimate of $7.3 billion-$7.5 billion yuan, above the consensus of $7.39 billion.
Best Buy (BBY) is up more than +15% after forecasting Q2 comparable sales up +1.00%, stronger than the consensus of down -0.32%.
Heico (HEI) is up more than +10% after reporting Q2 net sales of $1.38 billion, well above the consensus of $1.25 billion.
Hormel Foods (HRL) is up more than +9% after reporting Q2 adjusted operating margin of 9.9%, stronger than the consensus of 8.9%.
Caesars Entertainment (CZR) is up more than +1% after Fertitta Entertainment agreed to acquire the company for $17.6 billion, or $31 a share.
Photronics (PLAB) is down more than -32% after forecasting Q3 adjusted EPS of 39 cents to 45 cents, weaker than the consensus of 54 cents.
Symbotic (SYM) is down more than -9% after Softbank Group is said to sell 5.6 million shares of its holdings of SYM in an unregistered block trade between $51 and $53.63 a share.
Tyson Foods (TSN) is down more than -4% after announcing that CEO King will step down after five years.
HP Inc. (HPQ) is down more than -1% after lowering the upper end of its full-year EPS estimate to $2.90-$3.10 from a previous view of $2.90-$3.20, citing rising memory and storage costs.
Earnings Reports(5/28/2026)
Autodesk Inc (ADSK), Best Buy Co Inc (BBY), Burlington Stores Inc (BURL), Costco Wholesale Corp (COST), Dell Technologies Inc (DELL), Dollar Tree Inc (DLTR), Elastic NV (ESTC), Gap Inc/The (GAP), Hormel Foods Corp (HRL), MongoDB Inc (MDB), NetApp Inc (NTAP), Okta Inc (OKTA), SentinelOne Inc (S), UiPath Inc (PATH).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Rebound Amid News of a US-Iran Deal

The S&P 500 Index ($SPX) (SPY) today is down -0.14%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.27%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.34%. June E-mini S&P futures (ESM26) are down -0.17%, and June E-mini Nasdaq futures (NQM26) are down -0.38%.
Stock indexes are under pressure today after fresh US attacks on Iran boosted crude oil prices and fueled doubt over whether an end to the war is imminent. The US struck Iranian military targets for the second time this week, and Kuwait said it responded to Iranian missile and drone threats. Crude oil prices jumped more than +2% on the news.
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However, stock index futures bounced off their lows amid Fed-friendly US economic news. The Apr core PCE price index, the Fed's preferred inflation gauge, rose as expected. Also, April capital goods new orders unexpectedly declined, weekly jobless claims rose more than expected, and Q1 GDP was revised downward. The 10-year T-note yield gave up an early advance and is down -2 bp to 4.46%.
US weekly initial unemployment claims rose by +5,000 to 215,000, showing a weaker labor market than expectations of 211,000.
US Apr personal spending rose +0.5% m/m, right on expectations. Apr personal income was unchanged m/m, weaker than expectations of +0.4% m/m.
The US Apr core PCE price index, the Fed's preferred inflation gauge, rose +3.3% y/y, right on expectations and the largest increase in 2.5 years.
US Apr capital goods new orders nondefense ex-aircraft and parts unexpectedly fell -1.1% m/m versus expectations of a +0.4% m/m increase and the biggest decline in a year.
US Q1 GDP was revised downward to +1.6% (q/q annualized), weaker than expectations of no change at +2.0%. Q1 personal consumption was revised lower to +1.4% from the previously reported +1.6%, and the Q1 core PCE price index was revised upward to a 3-year high of +4.4% from the previously reported +4.3%.
Hawkish Fed comments are also weighing on stocks and bonds. Fed Governor Lisa Cook said inflation is headed in the wrong direction and she would be prepared to raise interest rates if that persists. Also, Minneapolis Fed President Neel Kashkari said US consumer prices are still "much too high" and that bringing down inflation remains his top priority.
Crude oil prices are up more than +2% today after US forces shot down four Iranian drones fired at a commercial ship and hit a launch site near the Strait of Hormuz. Also, the US Treasury added Iran's Persian Gulf Strait Authority to its Iran-related sanctions list to prevent Iran from profiting from vessels transiting the Strait of Hormuz by charging tolls. In addition, Israel stepped up attacks on Lebanon and said its ground forces would move further into the country, potentially complicating US-Iran talks on an interim peace deal.
The markets are discounting a 3% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.
The generally favorable Q1 earnings season is winding down. As of today, 83% of the 479 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.46%. China's Shanghai Composite recovered from a 5-week low and closed up +0.12%. Japan's Nikkei Stock Average closed down -0.47%.
Interest Rates
June 10-year T-notes (ZNM6) today are up +4 ticks. The 10-year T-note yield is down -1.4 bp to 4.469%. T-note prices recovered from early losses and moved higher on Fed-friendly economic news. Weekly jobless claims rose more than expected, Apr core capital goods orders unexpectedly declined, Q1 GDP was revised lower, and the Apr core PCE price index, the Fed's preferred inflation gauge, rose as expected.
T-notes initially moved lower today from a +2% jump in WTI crude oil prices, which raised inflation expectations. Also, hawkish comments from Fed Governor Lisa Cook and Minneapolis Fed President Neel Kashkari undercut T-note prices, as they expressed concern about persistently high inflation. In addition, supply pressures are negative for T-notes as the Treasury will auction $44 billion of 7-year T-notes later today.
European government bond yields are moving lower today. The 10-year German Bund yield is down -0.1 bp to 2.986%. The 10-year UK gilt yield is down -1.5 bp to 4.843%.
The Eurozone May economic sentiment indicator rose +0.3 to 93.5, stronger than expectations of no change at 93.0.
ECB Chief Economist Philip Lane said the impact of the Iran war will take longer to show in the labor market, and the "second round" of the energy shock on the Eurozone will persist for a while.
Swaps are discounting a 92% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Mining stocks are faltering today with gold prices dropping to a 2-month low and silver prices falling to a 4-week low. Newmont Corp (NEM), Hecla Mining (HL), and Coeur Mining (CDE) are down more than -3%, and Anglogold Ashanti (AU) is down more than -2%. Also, Freeport McMoRan (FCX) and Barrick Mining (B) are down more than -1%.
Cryptocurrency-related stocks are falling today, with Bitcoin (^BTCUSD) down more than -3% to a 6-week low. Strategy (MSTR) is down more than -6% to lead losers in the Nasdaq 100, and MARA Holdings (MARA) and Galaxy Digital Holdings (GLXY) are down more than -4%. Also, Coinbase Global (COIN) is down more than -1%.
Drone-related stocks are rallying today after the Wall Street Journal reported the Trump administration is exploring funding deals with a group of drone companies. Unusual Machines (UMAC) is up more than +47%, and Red Cat (RCAT) is up more than +22%. Also, AIRO Group Holdings (AIRO) is up more than +13%, and AeroVironment (AVAV) and Kratos Defense & Security Solutions (KTOS) are up more than +11%.
Photronics (PLAB) is down more than -31% after forecasting Q3 adjusted EPS of 39 cents to 45 cents, weaker than the consensus of 54 cents.
Symbotic (SYM) is down more than -9% after Softbank Group is said to sell 5.6 million shares of its holdings of SYM in an unregistered block trade between $51 and $53.63 a share.
HP Inc. (HPQ) is down more than -2% after lowering the upper end of its full-year EPS estimate to $2.90-$3.10 from a previous view of $2.90-$3.20, citing rising memory and storage costs.
Snowflake (SNOW) is up more than +33% after reporting Q1 revenue of $1.39 billion, better than the consensus of $1.33 billion and raising its 2027 product revenue forecast to $5.84 billion from a previous estimate of $5.66 billion, well above the consensus of $5.68 billion.
Dollar Tree (DLTR) is up more than +16% to lead gainers in the S&P 500 after reporting Q1 adjusted EPS of $1.74, stronger than the consensus of $1.55, and raising its 2027 adjusted EPS estimate to $6.70 to $7.10 from a previous estimate of $6.50 to $6.90, above the consensus of $6.69.
Agilent (A) is up more than +15% after raising its full-year revenue forecast to $7.39 billion-$7.49 billion from a previous estimate of $7.3 billion-$7.5 billion yuan, above the consensus of $7.39 billion.
Best Buy (BBY) is up more than +13% after forecasting Q2 comparable sales up +1.00%, stronger than the consensus of down -0.32%.
Heico (HEI) is up more than +12% after reporting Q2 net sales of $1.38 billion, well above the consensus of $1.25 billion.
Caesars Entertainment (CZR) is up more than +1% after Fertitta Entertainment agreed to acquire the company for $17.6 billion, or $31 a share.
Earnings Reports(5/28/2026)
Autodesk Inc (ADSK), Best Buy Co Inc (BBY), Burlington Stores Inc (BURL), Costco Wholesale Corp (COST), Dell Technologies Inc (DELL), Dollar Tree Inc (DLTR), Elastic NV (ESTC), Gap Inc/The (GAP), Hormel Foods Corp (HRL), MongoDB Inc (MDB), NetApp Inc (NTAP), Okta Inc (OKTA), SentinelOne Inc (S), UiPath Inc (PATH).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Pressured as Oil Prices Climb on US-Iran Clashes

Heico Corporation (HEI) came out with quarterly earnings of $1.66 per share, beating the Zacks Consensus Estimate of $1.33 per share. This compares to earnings of $1.12 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +24.64%. A quarter ago, it was expected that this company would post earnings of $1.26 per share when it actually produced earnings of $1.35, delivering a surprise of +7.14%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Heico, which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $1.38 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 10.65%. This compares to year-ago revenues of $1.1 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Heico shares have lost about 4.6% since the beginning of the year versus the S&P 500's gain of 9.8%.
What's Next for Heico?
While Heico has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Heico was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.43 on $1.29 billion in revenues for the coming quarter and $5.56 on $5.07 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense Equipment is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, AeroVironment (AVAV), is yet to report results for the quarter ended April 2026.
This maker of unmanned aircrafts is expected to post quarterly earnings of $1.53 per share in its upcoming report, which represents a year-over-year change of -5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
AeroVironment's revenues are expected to be $566.61 million, up 106% from the year-ago quarter.
Should You Invest in Heico Corporation (HEI)?
Before you invest in Heico Corporation (HEI), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Heico Corporation (HEI) Surpasses Q2 Earnings and Revenue Estimates

As military operations increasingly adopt autonomous strike systems and precision-guided weapons, investors are focusing on companies developing advanced tactical attack technologies. Two companies operating in this segment are AeroVironment, Inc. AVAV and RTX Corporation RTX. Both companies are involved in precision strike and missile-related defense systems designed to improve targeting accuracy, threat engagement and battlefield effectiveness across modern combat environments.
Modern defense strategies are placing greater emphasis on precision strike capabilities that can rapidly detect, track and neutralize threats while minimizing operational risk. Loitering munitions, missile systems, interceptors and integrated targeting technologies are becoming increasingly important for military modernization efforts. These systems support faster response times, improved mission coordination and enhanced operational flexibility across contested environments. As governments continue prioritizing advanced strike and missile defense capabilities, demand for these technologies is expected to remain strong.
Let’s compare the stocks’ fundamentals to determine which one is the better investment option at present.
The Case for AVAV Stock
AeroVironment develops autonomous precision strike systems designed for tactical military missions. Its Switchblade family of loitering munitions delivers portable precision strike capabilities against stationary and moving targets, while its Red Dragon systems are engineered for autonomous one-way attack missions in contested and GPS-denied environments. The company also develops counter-drone technologies and electronic warfare systems that support battlefield threat detection and defensive operations.
AeroVironment combines autonomous flight technologies, AI-enabled systems and integrated command-and-control software to improve targeting precision and mission effectiveness. Its focus on loitering munition systems and autonomous strike platforms aligns with growing military demand for flexible and rapidly deployable precision attack technologies.
The Case for RTX Stock
RTX develops a broad range of missile systems, smart weapons and integrated air and missile defense technologies through its Raytheon business. Its portfolio includes air-to-air missiles, shipboard missiles, missile defense interceptors and advanced radar systems designed for threat detection, tracking and precision engagement across multiple operational domains. The company also develops integrated command-and-control technologies that support coordinated offensive and defensive missions.
RTX’s defense technologies are designed to support precision targeting, layered missile defense and advanced threat mitigation capabilities for modern military operations. Its continued investment in missile systems, interceptors and integrated defense technologies positions the company to benefit from increasing global demand for advanced precision strike and missile defense solutions.
How Does the Zacks Consensus Estimate Compare for AVAV & RTX?
The Zacks Consensus Estimate for AeroVironment’s fiscal 2026 earnings per share (EPS) remains unchanged in the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for RTX’s 2026 EPS calls for an increase of 1.47% in the past 60 days.
Image Source: Zacks Investment Research
Return on Equity (ROE) of AVAV & RTX
ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. Currently, AeroVironment’s ROE is 3.26% compared with RTX’s 13.5%.
AVAV & RTX’s Price Performance
Over the past year, shares of AVAV and RTX have risen 3.1% and 33.7%, respectively.
Image Source: Zacks Investment Research
Valuation for AVAV & RTX
AVAV shares trade at a forward 12-month Price/Sales (P/S F12M) multiple of 3.94 compared with RTX’s P/S F12M of 2.48.
AVAV vs. RTX: Which Stock Looks More Compelling Now?
Both companies operate in the growing precision strike and missile defense market. AeroVironment focuses on autonomous strike systems, loitering munitions and AI-enabled tactical attack platforms designed to support precision engagement and battlefield awareness. RTX centers on missile systems, smart weapons, interceptors and integrated air and missile defense technologies that enhance threat detection, tracking and coordinated defense operations across multiple combat domains.
Our choice at the moment is RTX, given its stronger price performance, significantly higher ROE, more attractive valuation and improving earnings estimate trends compared to AeroVironment.
AeroVironment and RTX both carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AeroVironment vs. RTX: Which Aerospace-Defense Stock Has the Edge?

AeroVironment, Inc. AVAV is strengthening its defense technology portfolio by advancing autonomy, artificial intelligence (AI) and multi-domain control capabilities. These technologies are becoming increasingly important as defense customers seek systems that can operate across air, land, sea and other complex environments with greater speed, coordination and efficiency. By focusing on intelligent systems, the company is positioning itself to support missions that require faster decision-making and reduced operator workload.
A key part of this strategy is AeroVironment’s Kinesis command and control software. This platform is designed to support the operation of multiple uncrewed systems, including aircraft, ground vehicles and maritime assets. By bringing different assets under a common control environment, Kinesis helps improve situational awareness, mission planning and overall coordination for defense users.
The company is also building strength through MacCready Works, its innovation arm focused on autonomy, AI and advanced platform technologies. Solutions developed through this group are aimed at helping robotic systems perform complex missions in difficult operating environments. This focus supports AeroVironment’s ability to deliver systems that are more adaptive, connected and mission-ready.
With defense operations becoming more data-driven and distributed, demand for autonomous and software-enabled systems is likely to remain strong. AeroVironment’s work in AI-enabled autonomy gives it a stronger role in next-generation defense programs while broadening the value of its technology portfolio.
Companies Advancing Autonomous Defense Technologies
The defense sector is increasingly using AI, autonomy and command software to improve mission speed, coordination and decision-making. Companies like Kratos Defense & Security Solutions, Inc. KTOS and L3Harris Technologies, Inc. LHX are also strengthening their capabilities in this space.
Kratos Defense develops autonomous and unmanned systems while expanding capabilities in AI-driven mission and tactical communication technologies to support advanced defense operations.
L3Harris Technologies provides mission systems, sensors, and command and control technologies while strengthening autonomous and real-time battlefield communication capabilities for multi-domain operations.
Earnings Estimates for AVAV Stock
The Zacks Consensus Estimate for fiscal 2026 earnings per share suggests a year-over-year decline of 10.37%, and for fiscal 2027, estimates indicate growth of 26.94%.
Image Source: Zacks Investment Research
AVAV Stock Trading at a Discount
AeroVironment is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 3.84X compared with the industry average of 12.03X.
Image Source: Zacks Investment Research
AVAV Stock Price Performance
Over the past year, AVAV shares have climbed 2.9% compared with the industry’s 26.3% growth.
Image Source: Zacks Investment Research
AVAV’s Zacks Rank
AeroVironment currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How Is AeroVironment Advancing AI-Enabled Multi-Domain Autonomy?

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the PeakShares Sector Rotation ETF (Symbol: PSTR), we found that the implied analyst target price for the ETF based upon its underlying holdings is $33.59 per unit.
With PSTR trading at a recent price near $30.63 per unit, that means that analysts see 9.65% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PSTR's underlying holdings with notable upside to their analyst target prices are AeroVironment, Inc. (Symbol: AVAV), On Holding AG (Symbol: ONON), and SPDR Series Trust - State Street SPDR S&P Biotech ETF (Symbol: XBI). Although AVAV has traded at a recent price of $166.45/share, the average analyst target is 87.08% higher at $311.39/share. Similarly, ONON has 65.31% upside from the recent share price of $34.04 if the average analyst target price of $56.27/share is reached, and analysts on average are expecting XBI to reach a target price of $0.00/share, which is 47.93% above the recent price of $134.75. Below is a twelve month price history chart comparing the stock performance of AVAV, ONON, and XBI:
Below is a summary table of the current analyst target prices discussed above:
Name
Symbol
Recent Price
Avg. Analyst 12-Mo. Target
% Upside to Target
PeakShares Sector Rotation ETF
PSTR
$30.63
$33.59
9.65%
AeroVironment, Inc.
AVAV
$166.45
$311.39
87.08%
On Holding AG
ONON
$34.04
$56.27
65.31%
SPDR Series Trust - State Street SPDR S&P Biotech ETF
XBI
$134.75
$0.00
47.93%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
Also see:
Industrial Stocks Hedge Funds Are Buying
UBFO Options Chain
Floating Rate Preferreds
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	0.00 25.01
Price/Sales	10.59 1.43
P/B	2.09 2.54
P/FCF	0.00 19.81

Indicator	TTM Median
ROE	0.00 15.54
ROA	0.00 6.17
ROI	0.00 9.42
Net Worth	9.20 1.51
Quick Ratio	4.29 1.15
Current Ratio	5.08 1.59

Indicator	TTM Median
Net Profit Margin	0.00 7.39
Operating Margin	0.00 10.20
Gross Margin	24.71 32.49
Return on tangible equity	0.00 26.43

Indicator	TTM Median
EPS	0.32 0.60
EPS Forecast	0.34 0.58
Revenue	408.00M 194.00M
Gross Profit	104.00M —
EBITDA	29.00M —

AeroVironment, Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue