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AeroVironment Inc

AeroVironment Inc

AVAV
$146.71USD↓-0.24%-0.35 today

MARKET CAP

7.5B

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$138 – $147

52W RANGE

$135
$418

AI Summary

Stalk
TrimMedium

AVAV remains locked in a Stage 4 decline, with persistent lower highs and lower lows reinforcing a bearish medium-term bias. Price is currently extended below the 9 and 21 EMAs and in extreme oversold territory, suggesting exhaustion; bearish entries should be deferred until a pullback into EMA resistance. The long-term uptrend remains intact, framing this weakness as a tactical drawdown rather than a structural reversal.

  • ↑$400M U.S. Army contract drives 9.1% share surge, boosting revenue prospects
  • ↑One-month stock gain of 35.1% outperforms sector, indicating strong momentum
  • ↓Forward P/E at 54.8x vs 41.9x industry average marks overvaluation
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

AeroVironment, Inc. (NASDAQ:AVAV) is a leading player in the unmanned aerial vehicle (UAV) and drone technology sector, specializing in defense and military applications. The company develops advanced robotic systems, primarily focusing on the growing demand for defense and security technologies, such as counter-drone systems. Recently, AeroVironment secured a significant $400 million U.S. Army contract, solidifying its market position and boosting investor confidence amid ongoing changes in its leadership.

Bull says

  • ↑$400M U.S. Army contract drives 9.1% share surge, boosting revenue prospects
  • ↑One-month stock gain of 35.1% outperforms sector, indicating strong momentum
  • ↑Analysts rate 20 of 24 recommendations as Buy/Strong Buy
  • ↑Book-to-price ratio of 1.87 suggests undervaluation; solid cash flow underpins liquidity
  • ↑New leadership under Michael Ruppert aims to enhance strategy and performance
  • ↑Positive growth indicators project future revenue expansion in defense UAV markets

Bear says

  • ↓Forward P/E at 54.8x vs 41.9x industry average marks overvaluation
  • ↓Negative profit conversion highlights ongoing operating losses and margin challenges
  • ↓High short-interest betting against shares raises downward pressure risk
  • ↓Volatility and weak momentum indicate unstable price trends
  • ↓Elevated leverage limits financial flexibility amid rising debt concerns
  • ↓Negative earnings yield undermines value proposition, suggesting potential value trap

Investment themes with AVAV

Defense↓ -2.59%

Military equipment and defense contractors

BWXT · RKLB · CRS
Defense Tech↓ -1.40%

LMT · RTX · GD
Drones↓ -3.18%

Unmanned aerial vehicles and related technology

AVAV · ONDS · RCAT

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 09-10-2026neutral

Transcript signals

Bull points

  • In summary, we are very pleased with the results of the new AV on all metrics delivering solid top line and EBITDA growth.
  • we started the year with 454.7 million of revenue in the first quarter, which represents a 140% increase over the prior year as reported, or an 18% increase on a pro forma revenue basis.
  • Several of our products realized tremendous growth. Sysplay 600 product had over 200% revenue growth. Chem 20 had over 6x revenue growth. Our Locust directed energy counter UAS systems also had 5x pro forma revenue growth.

Bear points

  • The decrease in net income of $88.5 million can be attributed to increased intangible amortization, other non-cash purchase accounting expenses of $74.9 million for the Blue Halo acquisition, plus another $23.7 million of deal and integration costs.
  • In the first quarter, the company generated a net loss of $67.4 million versus net income of $21.2 million recorded in the same period last year.
  • The decrease in net income of $88.5 million can be attributed to increased intangible amortization, other non-cash purchase accounting expenses of $74.9 million for the Blue Halo acquisition, plus another $23.7 million of deal and integration costs.
Read full transcript analysis ›