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.

AeroVironment, Inc.

The global drone industry is moving rapidly from niche applications to mainstream adoption, reshaping how governments, businesses and consumers approach border defense, surveillance, logistics and infrastructure monitoring.
Within the defense vertical, growing geopolitical strains and defense upgrades are driving increased drone adoption worldwide, with governments allocating an increasing share of their budget to unmanned aerial systems (“UAS”). Globally, drones are now being widely deployed for border security; precision strikes; Intelligence, Surveillance, and Reconnaissance (“ISR”); and other tactical operations, making them indispensable assets in modern warfare.
While defense remains a core market, drones are rapidly gaining traction across a wide range of industries. Drones have become integral to various sectors like mining, infrastructure monitoring, real estate, oil and gas exploration, logistics and even filmmaking. From aerial photography and agricultural mapping, drones are transforming how businesses collect data and operate across sectors.
The convergence of drones with artificial intelligence (“AI”), cloud computing and edge processing is further driving adoption across verticals. The embedding of AI has made modern drones faster and more versatile than ever. AI incorporation is driving the autonomous navigation functionality of drones, enabling them to autonomously plan their flight paths based on real-time data, such as environmental terrain. The integration of 5G and advanced Wi-Fi technology has improved real-time data transmission, expanding commercial applications.
With regulatory frameworks evolving and military and commercial adoption gaining pace, the drone sector has a long runway for growth. The global drone tech market is expected to witness a CAGR of 14.3% from 2025 to 2030, according to a report from Grand View Research.
Drone tech companies with strong research and development (R&D) pipelines, diversified end-market exposure and strategic collaborations are well-positioned to flourish in this evolving landscape.
If you are looking to capitalize on this trend, our Drone Technology Screen makes it easy to identify high-potential stocks, such as AeroVironment, Inc. (AVAV), Kratos Defense & Security Solutions, Inc. (KTOS) and Draganfly Inc. (DPRO).
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3 Drone Tech Stocks to Keep an Eye on
AeroVironment is one of the key pure-play beneficiaries of rising global demand for UAS. AVAV develops uncrewed aircraft and ground robot systems, loitering munition systems, counter-UAS technologies and related services for the U.S. Department of Defense, other federal agencies, and international allied governments. AVAV continues to strengthen its competitive position by seamlessly integrating AI and cutting-edge computer vision into agile, effective next-gen drone solutions.
In the second quarter of fiscal 2026, the total ceiling value of contract awards reached $3.5 billion, driving bookings to $1.4 billion. AVAV’s steady investment in R&D and manufacturing capacity is the key catalyst in driving business momemtum. In the fiscal second quarter, the company unveiled the next generation of Switchblade loading munitions (Switchblade 600 Block 2, Switchblade 400 and Switchblade 300 Block 20), as well as upgraded JUMP 20 and JUMP20-X (its Group 3 uncrewed aircraft system).
AVAV’s expanding software ecosystem, anchored by the AV_Halo open-architecture platform, is emerging as a powerful long-term growth driver. It recently launched two products, namely AV_Halo Cortex (advanced intelligence fusion and analysis environment) and AV_Halo Mentor (a war fighter readiness suite that uses AR/VR weapons training and mission rehearsal).
AVAV is scaling its manufacturing footprint, including a planned high-capacity Switchblade facility, while leveraging synergies from the BlueHalo acquisition to deepen capabilities across counter-UAS, cyber, space, and electronic warfare. For fiscal 2026, it expects revenues between $1.95 billion and $2 billion.
AVAV carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kratos boasts a diverse range of tactical UAVs, including the UTAP-22 Mako, XQ-58A Valkyrie and X-61A Gremlin, along with aerial target drones like the BQM-167A, BQM-177A and MQM-178 Firejet.
On its last reported quarter’searnings call KTOS highlighted that governments are increasing defense budgets amid escalating geopolitical tensions. NATO and Pacific allies are expected to spend 5% of GDP instead of 2% historically, while U.S. national security spending is expected to top $1 trillion in 2026. KTOS stands to gain from this increased spending as one of the handful of qualified defense technology companies.
KTOS is deploying resources toward facilities, plant and equipment, and more to scale effectively and support program wins. In November 2025, the company announced the acquisition of Israel-based Orbit Technologies Ltd. Orbit Technologies specializes in satellite-based communication systems for mobile and unmanned undersea, aerial, seaborne and land systems, military vehicles and other systems. In October 2025, the company collaborated with Korea Aerospace Industries to advance Manned-Unmanned Teaming (MUM-T) technology using systems such as the XQ-58A Valkyrie, Tactical Firejet and Mako.
Kratos, which currently carries a Zacks Rank #3, delivered third-quarter revenues of $347.6 million, up 26% year over year. KTOS projects revenues of $320-$330 million for fourth-quarter 2025. The company expects 2025 revenues to be $1.32-$1.33 billion, higher than the previously stated $1.29-$1.31 billion.
Draganfly is a Canada-based drone solutions and systems developer. The company’s drones include Commander 3XL, Heavy Lift Drone, Commander 2 and Draganfly Medical Response Drone. The company’s Apex drone (launched last September) is aimed at ISR, marketed for both the military and public safety. Apex drone boasts dual payload capabilities and AI computing, powered by NVIDIA’s chips. Further, DPRO’s NDAA-compliant FlexForce FPV (first-person view) drone can be flown individually or autonomously, or swarmed.
Increasing deals with the U.S. military bode well. One of the most significant developments is the company’s first major U.S. Army FPV drone order, which is not only a product sale but also includes providing supply chain and logistical support. It also includes onsite assembly and manufacturing training for the Army to allow them to make “modifications on the fly.”
In October 2025, the company introduced its Outrider Southern Border drone, which is a North American-built, NDAA-compliant multi-mission drone platform. DPRO has 5-plus drone systems that are all NDAA-compliant. As the United States and NATO aggressively eliminate non-compliant Chinese systems from critical infrastructure, this compliance advantage becomes a moat. Last month, the company secured a significant international (Asia-Pacific) military order for Commander 3XL drones, thereby underscoring the company’s expanding footprint globally.
DPRO, a Zacks Rank #3 stock at present, is expanding its footprint in the demining vertical with collaborations with Autonome Labs and SafeLane. With its data, expertise and AI-powered aerial mapping capabilities, DPRO is well-positioned to expand in this niche market. In the last reported quarter, the company achieved 14.4% year-over-year revenue growth, supported by rising product sales.
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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.

Top Drone Tech Stocks to Bet on Amid Increasing Adoption

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Adobe Inc (Symbol: ADBE), where a total of 28,347 contracts have traded so far, representing approximately 2.8 million underlying shares. That amounts to about 59.1% of ADBE's average daily trading volume over the past month of 4.8 million shares. Particularly high volume was seen for the $420 strike put option expiring January 16, 2026, with 1,400 contracts trading so far today, representing approximately 140,000 underlying shares of ADBE. Below is a chart showing ADBE's trailing twelve month trading history, with the $420 strike highlighted in orange:
DraftKings Inc (Symbol: DKNG) saw options trading volume of 56,006 contracts, representing approximately 5.6 million underlying shares or approximately 46.7% of DKNG's average daily trading volume over the past month, of 12.0 million shares. Especially high volume was seen for the $35 strike call option expiring January 02, 2026, with 8,176 contracts trading so far today, representing approximately 817,600 underlying shares of DKNG. Below is a chart showing DKNG's trailing twelve month trading history, with the $35 strike highlighted in orange:
And AeroVironment, Inc. (Symbol: AVAV) saw options trading volume of 5,575 contracts, representing approximately 557,500 underlying shares or approximately 46% of AVAV's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $255 strike call option expiring December 26, 2025, with 1,062 contracts trading so far today, representing approximately 106,200 underlying shares of AVAV. Below is a chart showing AVAV's trailing twelve month trading history, with the $255 strike highlighted in orange:
For the various different available expirations for ADBE options, DKNG options, or AVAV options, visit StockOptionsChannel.com.
Also see:
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Funds Holding PRPC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Tuesday Option Activity: ADBE, DKNG, AVAV

Key Points
KeyBanc analyst Michael Leshock initiated AeroVironment stock with a buy rating this morning.
Leshock sees AV stock as attractively priced and well-positioned to profit from rising space and military spending.
Military drones manufacturer AeroVironment (NASDAQ: AVAV) stock gained 4% through 1:30 p.m. ET Friday.
You can thank KeyBanc analyst Michael Leshock for that. This morning, Leshock initiated coverage on AeroVironment with an overweight rating and a $285 price target.
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Why KeyBank loves AeroVironment stock
Although AeroVironment also makes some drones for civilian use, Leshock likes the company most for its "strong leverage to defense tech and space growth," as StreetInsider.com reports today.
AV boasts a differentiated product portfolio, which began with military drones but is now expanding into interceptor drones to shoot down other drones, industry-leading profit margins, and has a competitive moat from in the form of robust defense backlog and new business from its BlueHalo acquisition, which AV bought for $4.1 billion back in 2024 -- a price I said was nice back when the acquisition was announced, being at a much lower price-to-sales ratio than AeroVironment's own. It also gave AV stock exposure to the space industry, an area of robust growth in military spending.
Is AeroVironment stock a buy?
From a valuation perspective, Leshock notes that AV stock is trading for an enterprise value of about 28 times earnings before interest, taxes, depreciation, and amortization (EBITDA), which is right in the middle of its historical range -- and recommends buying the stock as it climbs back higher toward a 35-times multiple.
I'm not so sure he's right about that, though.
"EBITDA" or no EBITDA, I can't help noticing that AV stock today is unprofitable when earnings are calculated according to generally accepted accounting principles (GAAP), and burned about $240 million in negative free cash flow over the past 12 months. Indeed, AV's been FCF-negative for close to five straight years now.
Until that changes, I cannot recommend buying AeroVironment stock.
Ktos 4.5
Should you buy stock in AeroVironment right now?
Before you buy stock in AeroVironment, consider this:
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment. The Motley Fool has a disclosure policy.
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 Popped Friday

Key Points
AeroVironment achieved sales growth of 151% in the second quarter, powered by its recent acquisition of BlueHalo.
However, its profits fell short of expectations, so the stock got walloped.
From a longer-term perspective, though, the new-look AeroVironment looks stronger than ever.
Shares of up-and-coming unmanned defense systems provider, AeroVironment (NASDAQ: AVAV), are down 10% this week as of market close on Thursday.
The next-gen defense contractor reported second-quarter earnings on Tuesday that exceeded Wall Street's sales expectations but missed its adjusted net income expectations by a wide margin.
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AeroVironment's organic sales grew by 22% during Q2, but increased by 151% when including the company's recent acquisition of defense technology solutions provider BlueHalo.
Although the stock sold off slightly after missing analysts' expectations, I don't think investors should worry, as this appears to be a natural consequence of integrating such a large acquisition. Furthermore, AeroVironment was trading at 80 times forward earnings before this week's drop, so its stock was priced for perfection, and the company came up just shy.
The new-look AeroVironment
AeroVironment's $4.1 billion acquisition of BlueHalo appears to be a transformational event for the company. Not only does the deal bring in BlueHalo's complementary expertise in space technology, electronic warfare, and counter-unmanned aircraft systems, but it also enables the two companies to merge and create AV_Halo.
AV_Halo is a unified software stack that builds a mission-ready platform for fully integrating battlefield management.
Just half a year after closing this acquisition, AV_Halo has already been awarded a contract with the U.S. Army for its Human-Machine Integrated Formation program.
Speaking about this win, Chief Executive Officer Wahid Nawabi explained, "AV is going to be the lead software and system integrator for robotic systems on the edge of the battlefield. This award also validates the strength of our approach to software solutions, common controllers, and user interfaces, and underscores the Army's confidence in AV's ability to deliver mission-critical solutions."
This is a major development for the company as it shows the company is well on its way to becoming a leading "unified platform for the future battlesphere."
As promising as I think AeroVironment's future is, its stock still trades at 72 times forward earnings, even after this week's drop. Interested investors like myself should add slowly over time.
Should you invest $1,000 in AeroVironment right now?
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Josh Kohn-Lindquist has positions in AeroVironment. The Motley Fool has positions in and recommends AeroVironment. The Motley Fool has a disclosure policy.
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 Sank This Week

Key Points
AeroVironment's $4 billion purchase of BlueHalo is accelerating its revenue gains.
Yet integration costs are taking a toll on near-term profitability.
Shares of AeroVironment (NASDAQ: AVAV) declined more than 12% on Wednesday after the unmanned aerial vehicle manufacturer's earnings fell short of investors' expectations.
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BlueHalo is boosting sales growth, but acquisition costs weighed on profits
AeroVironment's revenue soared 151% year over year to $472.5 million in its fiscal second quarter ended Nov. 1. The gains were fueled by the defense contractor's acquisition of BlueHalo, a provider of space technology and autonomous systems, in May.
"We have built a portfolio of integrated capabilities and advanced technologies to meet the market's accelerating demand and serve as a partner of choice in critical moments," CEO Wahid Nawabi said in a press release.
Excluding the impact of BlueHalo, AeroVironment's revenue rose a solid 21% to $227.4 million.
In turn, AeroVironment's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 74% to $45 million.
However, the drone maker's adjusted earnings per share came in at $0.44, which was below Wall Street's estimates. Analysts had expected adjusted per-share profits of $0.79, according to Yahoo! Finance.
AeroVironment remains well-positioned for a drone-based future
Management guided for full-year revenue of $1.95 billion to $2 billion and adjusted EBITDA of $300 million to $320 million. The company also expects to generate adjusted earnings of $3.40 to $3.55 per share.
"We are confident that our unmatched innovation, strategic partnerships, and agility to expand our manufacturing capacity enable us to address evolving defense needs and lead the generational shift in defense over the longer term," Nawabi said.
Should you invest $1,000 in AeroVironment right now?
Before you buy stock in AeroVironment, consider this:
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment. The Motley Fool has a disclosure policy.
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 Fell Today

The S&P 500 Index ($SPX) (SPY) on Wednesday closed up by +0.67%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up by +1.05%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up by +0.42%. December E-mini S&P futures (ESZ25) rose +0.66%, and December E-mini Nasdaq futures (NQZ25) rose +0.44%.
Stock indexes shook off early weakness on Wednesday and settled higher, with the S&P 500 posting a 6-week high, the Nasdaq 100 a 5-week high, and the Dow Jones Industrial Average a 3.5-week high. Stocks rallied on Wednesday after the Fed cut interest rates by 25 bp and Fed Chair Powell took a less hawkish tone than anticipated. Stocks also found support after the Fed raised its US 2025 GDP forecast and lowered its core PCE price forecast. In addition, the Fed boosted market liquidity by saying it will purchase $40 billion of T-bills per month to rebuild reserves.
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Stocks found some support today amid signs of easing wage pressures, which are dovish for Fed policy, after the US Q3 employment cost index rose by +0.8% q/q, slightly weaker than the +0.9% q/q expected.
US MBA mortgage applications rose +4.8% in the week ended December 5, with the purchase mortgage sub-index down -2.4% and the refinancing mortgage sub-index up +14.3%. The average 30-year fixed rate mortgage rose +1 bp to 6.33% from 6.32% in the prior week.
The FOMC, as expected, cut the fed funds target range by 25 bp to 3.50%-3.75% in a 9-3 vote and said it will consider "the extent and timing of additional adjustments" to interest rates. The FOMC noted that "job gains have slowed this year" and "downside risks to employment rose in recent months." Also, "inflation has moved up since earlier in the year and remains somewhat elevated."
The Fed's "dot plot" of interest rate projections shows the median forecast for the fed funds rate is 3.375% for the end of 2026, implying one 25 bp rate cut next year, unchanged from September.
The FOMC raised its 2025 GDP estimate to 1.7% from 1.6% in September and raised its 2026 GDP estimate to 2.3% from 1.8% in September. The FOMC cut its 2025 core PCE price estimate to 3.0% from 3.1% in September and cut its 2026 core PCE price estimate to 2.5% from 2.6% in September.
The Fed said it will begin buying $40 billion of Treasury bills per month starting December 12 to rebuild reserves in the financial system, which shrank as it tightened its balance sheet.
Fed Chair Powell signaled the Fed may now pause its interest rate cutting campaign when he said the Fed is now "within a range of plausible estimates of neutral and leave us well positioned to determine the extent and timing of additional adjustments" to rates. He added that he doesn't think a rate hike is anybody's base case for the Fed's next policy move.
The markets this week will focus on Thursday’s weekly initial unemployment claims, expected to increase by +29,000 to 220,000.
The markets are discounting a 22% chance that the FOMC will cut the fed funds target range by 25 bp at the January 27-28 FOMC meeting.
Q3 corporate earnings season is drawing to a close as 495 of the 500 S&P companies have released results. According to Bloomberg Intelligence, 83% of reporting S&P 500 companies exceeded forecasts, on course for the best quarter since 2021. Q3 earnings rose +14.6%, more than doubling expectations of +7.2% y/y.
Overseas stock markets settled lower on Wednesday. The Euro Stoxx 50 closed down -0.18%. China’s Shanghai Composite closed down -0.23%. Japan’s Nikkei Stock 225 fell from a 3.5-week high and closed down -0.10%.
Interest Rates
March 10-year T-notes (ZNH6) on Wednesday closed up +4 ticks. The 10-year T-note yield fell -4.1 bp to 4.147%. Mar T-note futures rebounded from a 3-month low on Wednesday and moved higher, and the 10-year T-note yield fell from a 3-month high of 4.207%. T-notes found support after the US Q3 employment index rose less than expected, a dovish factor for Fed policy. T-notes added to their gains after the FOMC cut its 2025 and 2026 US core PCE price estimates and after Fed Chair Powell said that he doesn't think a rate hike is anybody's base case for the Fed's next policy move.
T-notes were initially under pressure early Wednesday amid concerns that a divided FOMC will signal a hawkish rate cut of -25 bp, but then signal policy will remain on hold for an extended period. T-notes also saw some negative carryover from hawkish ECB comments on Wednesday, which pushed the German 10-year bund yield to an 8.75-month high.
European government bond yields are moving higher today. The 10-year German bund yield climbed to an 8.75-month high of 2.895% and finished up by +0.1 bp to 2.851%. The 10-year UK gilt yield rose to a 2.5-week high of 4.554% and is up by +0.1 bp to 4.506%.
ECB President Lagarde said the ECB will likely raise its economic growth forecasts at next week's policy meeting, reflecting a more optimistic outlook.
ECB Governing Council member Simkus said, "We have an inflation rate that is more or less close to the 2% target in the medium term, which suggests no need for a change in interest rates, not only at the next ECB meeting in December but also in further meetings."
Swaps are discounting a 1% chance for a -25 bp rate cut by the ECB at its next policy meeting on December 18.
US Stock Movers
Chip makers rallied on Wednesday, helping lift the broader market. Micron Technology (MU) and Marvell Technology (MRVL) closed up more than +4%, and Applied Materials (AMAT) and Qualcomm (QCOM) closed up more than +3%. Also, Analog Devices (ADI), Broadcom (AVGO), GlobalFoundries (GFS), Lam Research (LRCX), Microchip Technology (MCHP), NXP Semiconductors NV (NXPI), KLA Corp (KLAC), and Texas Instruments (TXN) closed up more than +1%.
Mobile grocery delivery service companies retreated on Wednesday after Amazon.com said it has expanded same-day delivery for perishable groceries to over 2,300 cities and towns, with more coming next year. Maplebear (CART) closed down more than -6% and Uber Technologies (UBER) closed down more than -5% to lead losers in the S&P 500. Also, DoorDash (DASH) closed down more than -4%.
Photronics (PLAB) closed up more than +45% after reporting Q4 adjusted EPS of 60 cents, well above the consensus of 45 cents, and forecasting Q1 adjusted EPS of 51 cents to 59 cents, better than the consensus of 46 cents.
GE Vernova (GEV) closed up more than +15% to lead gainers in the S&P 500 after boosting its stock buyback program to $10 billion and doubling its quarterly dividend to 50 cents.
EchoStar (SATS) closed up more than +10% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $110.
Middleby Corp. (MIDD) closed up more than +9% after Jeffries upgraded the stock to buy from hold with a price target of $175.
American International Group (AIG) closed up more than +6% after Insurance Inside reported that Chubb made an informal takeover offer for the company.
PepsiCo (PEP) closed up more than +3% after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $164.
Waters Corp. (WAT) closed up more than +2% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $480.
AeroVironment (AVAV) closed down -13% after cutting its 2026 adjusted EPS forecast to $3.40-$3.55 from a previous forecast of $3.60-$3.70, below the consensus of $3.63.
Netflix (NFLX) closed down more than -4% after Paramount said in a letter to Warner Bros. Discovery holders that its offer of $30 per share is superior to Netflix’s offer.
GameStop (GME) closed down more than -4% after reporting Q3 net sales fell -4.6% y/y to $821.0 million.
Noble Corp Plc (NE) closed down more than -2% after JPMorgan Chase downgraded the stock to neutral from overweight.
T Rowe Price Group (TROW) closed down more than 1% after reporting that assets under management in Nov fell -0.2% m/m to $1.79 trillion.
Earnings Reports(12/11/2025)
Broadcom Inc (AVGO), Ciena Corp (CIEN), Costco Wholesale Corp (COST), Lululemon Athletica Inc (LULU), RH (RH).
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.
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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.

Stocks Rally as Fed Cuts Interest Rates and Boosts Liquidity

Key Points
Wednesday brought gains for major stock benchmarks.
The Federal Reserve cut interest rates but signaled a slowing in expected future reductions.
Earnings caused several stocks to make big moves.
Wednesday finally broke the logjam that the stock market had been in earlier in the week, as the Federal Reserve's two-day meeting on interest rates finally ended. Fed Chair Jerome Powell announced a quarter-percentage-point cut in the Federal Funds rate to a new range of 3.5% to 3.75%. However, the Federal Open Market Committee decision suggested that the central bank would make just a single rate cut in 2026, which is somewhat more hawkish than many economists had expected. Nevertheless, the news resulted in gains for major benchmarks, with the Dow Jones Industrial Average (DJINDICES: ^DJI) leading the way and the Nasdaq Composite (NASDAQINDEX: ^IXIC) and S&P 500 (SNPINDEX: ^GSPC) following suit.
Index
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Daily Percentage Change
Daily Point Change
Dow
+1.05%
+497
S&P 500
+0.67%
+46
Nasdaq
+0.33%
+78
The peak of earnings season was well over a month ago, but a few companies are still reporting their latest results. Many of those companies were among the stocks making the biggest moves today. Let's take a closer look.
Top Stock Gainers Today
PLAB: +45%
Photronics (NASDAQ: PLAB) was the top stock market gainer on Wednesday after the semiconductor circuit-design technology leader reported fiscal fourth-quarter and full-year 2025 results. At first glance, the numbers didn't seem to be much cause for celebration, as revenue fell 2% year over year in fiscal 2025 and adjusted earnings of $2.01 per share were also down slightly from 2024's figures. However, most investors had expected a much worse showing from the tech company, and CEO George Macricostas said that strength in its core U.S. business and encouraging signs from its expansion into South Korea could play a big role in making fiscal 2026 better yet.
GEV: +16%
Natural gas turbine specialist GE Vernova (NYSE: GEV) was also a big winner on Wednesday. The company held an investor event late Tuesday at which it dramatically boosted its sales and free cash flow estimates for 2028. GE Vernova is counting on rising demand for electrical power from new data centers for artificial intelligence and cloud computing capabilities to drive hyperscalers, utilities, and other businesses to purchase more gas turbines. And with the company now expecting its backlog to rise from $135 billion today to $200 billion three years from now, it's clear that GE Vernova expects the AI boom to continue indefinitely into the future.
Top Stock Losers Today
AVAV: -13%
AeroVironment (NASDAQ: AVAV) was one of the top stock losers on the day, having disappointed investors with its fiscal second-quarter financial results late Tuesday and seen substantial declines in after-hours trading. The drone maker did manage to report greater revenue growth than most investors had anticipated. However, adjusted earnings per share were down more than 6% year over year to $0.44, missing the consensus forecast among investors for $0.79 per share. AeroVironment also cut its projected full-year fiscal 2026 earnings forecast by $0.15 to $0.20 per share, setting a new yearly range of $3.40 to $3.50 per share.
DNLI: -11%
Finally, Denali Therapeutics (NASDAQ: DNLI) finished Wednesday down 11%. After having seen shares climb sharply in November and early December, the biopharmaceutical company chose to raise capital through a secondary offering of stock and warrants. Denali announced the pricing of that offering this morning, collecting $17.50 per share. That should add $200 million in gross proceeds to Denali's war chest for future research and development expenses, but it represented much weaker pricing than the $19.66 closing price for the stock Tuesday afternoon. Investors will need to hope that the company's pipeline of candidate treatments yields good results in the future.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment. The Motley Fool recommends Ge Vernova. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Biggest Stock Movers Today, Dec. 10: PLAB, AVAV, & More

The S&P 500 Index ($SPX) (SPY) today is down up +0.34%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.67%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.01%.
In a divided vote, the Federal Reserve approved a third 25-basis-point interest rate reduction this year, setting the benchmark to a range of 3.5% to 3.75%. The decision faced opposition from both hawks, who preferred no change, and a dove who argued for a larger, half-percentage-point cut. Despite inflation remaining above the 2% target, officials anticipate only one further cut in 2026, consistent with previous projections, citing a softening job market.
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Before the rate cut was announced, stocks found some support today amid signs of easing wage pressures, which are dovish for Fed policy, after the US Q3 employment cost index rose by +0.8% q/q, slightly weaker than the +0.9% q/q expected.
US MBA mortgage applications rose +4.8% in the week ended December 5, with the purchase mortgage sub-index down -2.4% and the refinancing mortgage sub-index up +14.3%. The average 30-year fixed rate mortgage rose +1 bp to 6.33% from 6.32% in the prior week.
On Thursday, weekly initial unemployment claims are expected to increase by +29,000 to 220,000.
Q3 corporate earnings season is drawing to a close as 495 of the 500 S&P companies have released results. According to Bloomberg Intelligence, 83% of reporting S&P 500 companies exceeded forecasts, on course for the best quarter since 2021. Q3 earnings rose +14.6%, more than doubling expectations of +7.2% y/y.
Overseas stock markets are lower today. The Euro Stoxx 50 is down -0.21%. China’s Shanghai Composite closed down -0.23%. Japan’s Nikkei Stock 225 fell from a 3.5-week high and closed down -0.10%.
Interest Rates
March 10-year T-notes (ZNH6) today are up +2 ticks. The 10-year T-note yield is down -2.2 bp to 4.166%. Mar T-note futures rebounded from a 3-month low today and moved higher, and the 10-year T-note yield fell from a 3-month high of 4.207%. T-notes found support after the US Q3 employment index rose less than expected, a dovish factor for Fed policy. Short covering also emerged in T-notes today after crude oil prices stumbled to a 2-week low, which lowered inflation expectations. In addition, position squaring ahead of this afternoon’s FOMC results helped push T-note prices higher.
T-notes today were initially under pressure amid concerns that a divided FOMC will signal a hawkish rate cut of -25 bp, but then signal policy will remain on hold for an extended period. T-notes also saw some negative carryover from hawkish ECB comments today, which pushed the German 10-year bund yield to an 8.75-month high.
European government bond yields are moving higher today. The 10-year German bund yield climbed to an 8.75-month high of 2.895% and is up by +1.2 bp to 2.862%. The 10-year UK gilt yield rose to a 2.5-week high of 4.554% and is up by +1.3 bp to 4.518%.
ECB President Lagarde said the ECB will likely raise its economic growth forecasts at next week's policy meeting, reflecting a more optimistic outlook.
ECB Governing Council member Simkus said, "We have an inflation rate that is more or less close to the 2% target in the medium term, which suggests no need for a change in interest rates, not only at the next ECB meeting in December but also in further meetings."
Swaps are discounting a 0% chance for a -25 bp rate cut by the ECB at its next policy meeting on December 18.
US Stock Movers
Mobile grocery delivery service companies are sliding today after Amazon.com said it has expanded same-day delivery for perishable groceries to over 2,300 cities and towns, with more coming next year. Maplebear (CART) is down more than -6% and Uber Technologies (UBER) is down more than -4% to lead losers in the S&P 500. Also, DoorDash (DASH) is down more than -4% to lead losers in the Nasdaq 100.
Cryptocurrency-exposed stocks are under pressure today with Bitcoin (^BTCUSD) down nearly -1%. MARA Holdings (MARA) is down more than -3%, and Galaxy Digital Holdings (GLXY) and Riot Platforms (RIOT) are down more than -2%. Also, Strategy (MSTR) and Coinbase Global (COIN) are down more than -1%.
AeroVironment (AVAV) is down more than -10% after cutting its 2026 adjusted EPS forecast to $3.40-$3.55 from a previous forecast of $3.60-$3.70, below the consensus of $3.63.
GameStop (GME) is down more than -6% after reporting Q3 net sales fell -4.6% y/y to $821.0 million.
T Rowe Price Group (TROW) is down more than -3% after reporting assets under management in Nov fell -0.2% m/m to $1.79 trillion.
Noble Corp Plc (NE) is down more than -3% after JPMorgan Chase downgraded the stock to neutral from overweight.
Biogen (BIIB) is down more than -1% after HBSC downgraded the stock to reduce from hold with a price target of $143.
Photronics (PLAB) is up more than +42% after reporting Q4 adjusted EPS of 60 cents, well above the consensus of 45 cents, and forecasting Q1 adjusted EPS of 51 cents to 59 cents, better than the consensus of 46 cents.
GE Vernova (GEV) is up more than +9% to lead gainers in the S&P 500 after boosting its stock buyback program to $10 billion and doubling its quarterly dividend to 50 cents.
EchoStar (SATS) is up more than +5% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $110.
Middleby Corp. (MIDD) is up more than +5% after Jeffries upgraded the stock to buy from hold with a price target of $175.
Chewy (CHWY) is up more than +2% after reporting Q3 net sales of $3.12 billion, better than the consensus of $3.10 billion.
PepsiCo (PEP) is up more than +2% after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $164.
Waters Corp. (WAT) is up more than +1% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $480.
Earnings Reports(12/10/2025)
Adobe Inc (ADBE), Chewy Inc (CHWY), Nordson Corp (NDSN), Oracle Corp (ORCL), Synopsys Inc (SNPS), Vail Resorts Inc (MTN).
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.

Fed Cuts Rates for Third Time This Year, Signals One More in 2026

The S&P 500 Index ($SPX) (SPY) today is down by -0.06%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.26%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.50%. December E-mini S&P futures (ESZ25) are down -0.08%, and December E-mini Nasdaq futures (NQZ25) are down -0.58%.
Stock indexes are mostly lower today ahead of the FOMC meeting results this afternoon. Stocks are under pressure today due to rising global bond yields. The 10-year T-note yield rose to a 3-month high of 4.21% and the 10-year German bund yield climbed to an 8.75-month high of 2.90%. However, T-note yields have since turned lower on position squaring ahead of the FOMC meeting results, with the 10-year T-note yield down -2 bp to 4.17%.
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The markets are concerned that the FOMC will make a hawkish rate cut at the conclusion of today’s 2-day FOMC meeting, where they cut interest rates by -25 bp but signal a “long hold” in rates thereafter. Recent US economic news has shown the economy cooling while inflation remains above target, which may prompt the Fed to delay further rate cuts.
Stocks found some support today amid signs of easing wage pressures, which are dovish for Fed policy, after the US Q3 employment cost index rose by +0.8% q/q, slightly weaker than the +0.9% q/q expected.
US MBA mortgage applications rose +4.8% in the week ended December 5, with the purchase mortgage sub-index down -2.4% and the refinancing mortgage sub-index up +14.3%. The average 30-year fixed rate mortgage rose +1 bp to 6.33% from 6.32% in the prior week.
The markets this week will focus on government reports and the FOMC meeting. Later today, the FOMC meeting is expected to cut the federal funds target range by -25 bp to 3.50%-3.75%. The markets will also look at the Fed's summary of economic projections and its dot-plot interest rate forecast. In addition, post-meeting comments from Fed Chair Powell about the future direction of interest rates could move the markets. On Thursday, weekly initial unemployment claims are expected to increase by +29,000 to 220,000.
The markets are discounting a 93% chance of another -25 bp rate cut at the conclusion of the 2-day FOMC meeting later today.
Q3 corporate earnings season is drawing to a close as 495 of the 500 S&P companies have released results. According to Bloomberg Intelligence, 83% of reporting S&P 500 companies exceeded forecasts, on course for the best quarter since 2021. Q3 earnings rose +14.6%, more than doubling expectations of +7.2% y/y.
Overseas stock markets are lower today. The Euro Stoxx 50 is down -0.21%. China’s Shanghai Composite closed down -0.23%. Japan’s Nikkei Stock 225 fell from a 3.5-week high and closed down -0.10%.
Interest Rates
March 10-year T-notes (ZNH6) today are up +2 ticks. The 10-year T-note yield is down -2.2 bp to 4.166%. Mar T-note futures rebounded from a 3-month low today and moved higher, and the 10-year T-note yield fell from a 3-month high of 4.207%. T-notes found support after the US Q3 employment index rose less than expected, a dovish factor for Fed policy. Short covering also emerged in T-notes today after crude oil prices stumbled to a 2-week low, which lowered inflation expectations. In addition, position squaring ahead of this afternoon’s FOMC results helped push T-note prices higher.
T-notes today were initially under pressure amid concerns that a divided FOMC will signal a hawkish rate cut of -25 bp, but then signal policy will remain on hold for an extended period. T-notes also saw some negative carryover from hawkish ECB comments today, which pushed the German 10-year bund yield to an 8.75-month high.
European government bond yields are moving higher today. The 10-year German bund yield climbed to an 8.75-month high of 2.895% and is up by +1.2 bp to 2.862%. The 10-year UK gilt yield rose to a 2.5-week high of 4.554% and is up by +1.3 bp to 4.518%.
ECB President Lagarde said the ECB will likely raise its economic growth forecasts at next week's policy meeting, reflecting a more optimistic outlook.
ECB Governing Council member Simkus said, "We have an inflation rate that is more or less close to the 2% target in the medium term, which suggests no need for a change in interest rates, not only at the next ECB meeting in December but also in further meetings."
Swaps are discounting a 0% chance for a -25 bp rate cut by the ECB at its next policy meeting on December 18.
US Stock Movers
Mobile grocery delivery service companies are sliding today after Amazon.com said it has expanded same-day delivery for perishable groceries to over 2,300 cities and towns, with more coming next year. Maplebear (CART) is down more than -6% and Uber Technologies (UBER) is down more than -4% to lead losers in the S&P 500. Also, DoorDash (DASH) is down more than -4% to lead losers in the Nasdaq 100.
Cryptocurrency-exposed stocks are under pressure today with Bitcoin (^BTCUSD) down nearly -1%. MARA Holdings (MARA) is down more than -3%, and Galaxy Digital Holdings (GLXY) and Riot Platforms (RIOT) are down more than -2%. Also, Strategy (MSTR) and Coinbase Global (COIN) are down more than -1%.
AeroVironment (AVAV) is down more than -10% after cutting its 2026 adjusted EPS forecast to $3.40-$3.55 from a previous forecast of $3.60-$3.70, below the consensus of $3.63.
GameStop (GME) is down more than -6% after reporting Q3 net sales fell -4.6% y/y to $821.0 million.
T Rowe Price Group (TROW) is down more than -3% after reporting assets under management in Nov fell -0.2% m/m to $1.79 trillion.
Noble Corp Plc (NE) is down more than -3% after JPMorgan Chase downgraded the stock to neutral from overweight.
Biogen (BIIB) is down more than -1% after HBSC downgraded the stock to reduce from hold with a price target of $143.
Photronics (PLAB) is up more than +42% after reporting Q4 adjusted EPS of 60 cents, well above the consensus of 45 cents, and forecasting Q1 adjusted EPS of 51 cents to 59 cents, better than the consensus of 46 cents.
GE Vernova (GEV) is up more than +9% to lead gainers in the S&P 500 after boosting its stock buyback program to $10 billion and doubling its quarterly dividend to 50 cents.
EchoStar (SATS) is up more than +5% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $110.
Middleby Corp. (MIDD) is up more than +5% after Jeffries upgraded the stock to buy from hold with a price target of $175.
Chewy (CHWY) is up more than +2% after reporting Q3 net sales of $3.12 billion, better than the consensus of $3.10 billion.
PepsiCo (PEP) is up more than +2% after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $164.
Waters Corp. (WAT) is up more than +1% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $480.
Earnings Reports(12/10/2025)
Adobe Inc (ADBE), Chewy Inc (CHWY), Nordson Corp (NDSN), Oracle Corp (ORCL), Synopsys Inc (SNPS), Vail Resorts Inc (MTN).
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.

Stock Investors are Cautious Ahead of FOMC Results and Powell Comments

AeroVironment (AVAV) reported $188.46 million in revenue for the quarter ended October 2024, representing a year-over-year increase of 4.2%. EPS of $0.47 for the same period compares to $0.97 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $178.96 million, representing a surprise of +5.31%. The company delivered an EPS surprise of -28.79%, with the consensus EPS estimate being $0.66.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how AeroVironment performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Contract Services: $37.23 million versus $32.39 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.3% change.
Revenue- Product Sales: $151.23 million compared to the $147.46 million average estimate based on two analysts. The reported number represents a change of +3.7% year over year.
Gross margin- Contract services: $9.46 million versus the two-analyst average estimate of $7.96 million.
Gross margin- Product sales: $64.18 million versus the two-analyst average estimate of $64.10 million.
View all Key Company Metrics for AeroVironment here>>>
Shares of AeroVironment have returned -12.1% over the past month versus the Zacks S&P 500 composite's +5.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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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.

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AeroVironment, Inc.

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