Defense Stocks Rise After U.S.-Israeli Strikes on Iran
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 02 2026
0mins
Should l Buy AVAV?
Source: CNBC
- Defense Stocks Surge: Following the joint U.S.-Israeli attack on Iran, defense stocks collectively rose, with Lockheed Martin shares gaining 6%, Northrop Grumman up 5%, and drone manufacturer AeroVironment soaring over 10%, indicating strong market optimism regarding defense spending.
- Oil Prices Spike: The escalation of conflict has led to a significant rise in oil prices, with Brent crude hitting a 52-week high of over $78 on Monday, causing Exxon Mobil and Chevron shares to rise about 4% and ConocoPhillips to gain over 5%, reflecting market concerns over potential disruptions to global crude production and transport.
- Tankers Stocks Perform Well: In response to the military strikes in the Middle East, tanker stocks surged, with Frontline rising over 5%, DHT Holdings up 7%, and International Seaways increasing by 6%, showcasing heightened expectations for tanker transportation demand.
- Travel Stocks Decline: The conflict has caused oil prices to surge, disrupting global travel, leading to declines in travel stocks, with Expedia and Booking Holdings down 3.2% and 2.7%, respectively, Delta Air Lines falling 5.7%, and American Airlines and United Airlines dropping at least 6%, reflecting a pessimistic outlook for the travel industry.
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Analyst Views on AVAV
Wall Street analysts forecast AVAV stock price to rise
13 Analyst Rating
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 227.290
Low
315.00
Averages
390.75
High
450.00
Current: 227.290
Low
315.00
Averages
390.75
High
450.00
About AVAV
AeroVironment, Inc. is a defense technology provider delivering integrated capabilities across air, land, sea, space, and cyber. The Company develops and deploys autonomous systems, precision strike systems, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities. The Company’s segments include Autonomous Systems (AxS) and Space, Cyber, and Directed Energy (SCDE). The AxS segment focuses on the design, development, production, delivery, and support of intelligent, multi-domain robotic systems, including uncrewed aircraft systems (UAS) and ground robot systems. It includes the Company’s former Uncrewed Systems, Loitering Munitions Systems, and MacCready Works segments as well as Radio Frequency and Kinetic Counter-UAS Electronic Warfare Systems and others. The SCDE segment focuses on advanced technologies in the space domain providing space-based and ground-based platforms, cyber capabilities, and directed energy systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AeroVironment Set to Announce Q3 Earnings on March 10
- Earnings Announcement Schedule: AeroVironment (AVAV) is set to announce its Q3 earnings on March 10 after market close, with consensus estimates predicting an EPS of $0.69 and revenue of $475.65 million, indicating investor interest in the company's performance.
- Performance Expectations Analysis: Over the past two years, AVAV has beaten EPS estimates 50% of the time and revenue estimates 88% of the time, although recent downward revisions of EPS estimates by 10 times suggest a cautious market outlook on the company's future performance.
- Revenue Estimate Changes: While there has been one upward revision in revenue estimates, there have also been 12 downward revisions, reflecting analysts' concerns about the company's revenue growth potential, which may impact investor confidence.
- Military Contract Approval: AeroVironment recently secured a $97.4 million contract from the U.S. Army to advance next-gen sensor testing, which not only strengthens the company's order book but also potentially provides funding for future technological advancements.
See More
AeroVironment to Report Q3 Earnings on March 10
- Earnings Release Date: AeroVironment is set to report its Q3 earnings on March 10, with analysts expecting an EPS of $0.69 and revenue of $475.65 million, providing investors with an updated view of the company's financial health.
- Analyst Expectations: Analysts generally predict that AeroVironment's revenue will show year-over-year growth, reflecting ongoing demand in the drone and related technology sectors; if actual results exceed expectations, it could positively impact the stock price.
- Stock Price Movement: On March 8, AeroVironment's stock fell by 1.1%, which may indicate market caution ahead of the earnings report, as investors might adopt a wait-and-see approach while awaiting critical financial data.
- Market Reaction: Despite the short-term decline in stock price, if the earnings report meets or exceeds analyst expectations, it could trigger renewed investor interest, potentially driving the stock price up and enhancing market confidence.
See More
AeroVironment Financial Results: Insights on the Iran Conflict, Stock Market Response, and Key Highlights in Today's Update
- Earnings Report: AeroVironment is set to report its fiscal third-quarter earnings on Tuesday evening.
- Industry Context: The earnings report comes at a significant time for the company and the drone industry, influenced by rising geopolitical tensions and ongoing conflicts in Iran.
See More
AeroVironment Q3 Earnings Preview: Strong Growth Expected
- Earnings Release Announcement: AeroVironment is set to release its Q3 earnings after the market closes on March 10, with expected earnings per share of 69 cents, a significant increase from 30 cents in the same period last year, indicating improved profitability.
- Strong Revenue Expectations: Analysts forecast that AeroVironment's quarterly revenue will reach $475.65 million, up from $167.64 million a year earlier, showcasing the company's robust performance amid rising market demand.
- Significant Contract Awarded: On March 5, the company announced it secured a $97.4 million contract under the U.S. Army’s Aviation and Missile Technology Consortium to develop advanced testing environments, which will enhance its technological capabilities and market position in the defense sector.
- Stock Price Movement: Despite the optimistic outlook, AeroVironment's shares fell 1.1% to close at $227.29 on Monday, reflecting market caution ahead of the upcoming earnings report.
See More
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- Stock Market Movement: Stock futures were rising on Tuesday, indicating positive investor sentiment.
- Investor Sentiment: Investors are hopeful for a swift resolution to the ongoing war in Iran.
See More
AeroVironment Set to Announce Q3 Earnings on March 10
- Earnings Announcement Schedule: AeroVironment (AVAV) is set to announce its Q3 earnings on March 10 after market close, with consensus estimates predicting an EPS of $0.69 and revenue of $475.65 million, indicating investor interest in the company's performance.
- Performance Expectations Analysis: Over the past two years, AVAV has beaten EPS estimates 50% of the time and revenue estimates 88% of the time, although recent downward revisions of EPS estimates by 10 times suggest a cautious market outlook on the company's future performance.
- Revenue Estimate Changes: While there has been one upward revision in revenue estimates, there have also been 12 downward revisions, reflecting analysts' concerns about the company's revenue growth potential, which may impact investor confidence.
- Military Contract Approval: AeroVironment recently secured a $97.4 million contract from the U.S. Army to advance next-gen sensor testing, which not only strengthens the company's order book but also potentially provides funding for future technological advancements.
See More
AeroVironment to Report Q3 Earnings on March 10
- Earnings Release Date: AeroVironment is set to report its Q3 earnings on March 10, with analysts expecting an EPS of $0.69 and revenue of $475.65 million, providing investors with an updated view of the company's financial health.
- Analyst Expectations: Analysts generally predict that AeroVironment's revenue will show year-over-year growth, reflecting ongoing demand in the drone and related technology sectors; if actual results exceed expectations, it could positively impact the stock price.
- Stock Price Movement: On March 8, AeroVironment's stock fell by 1.1%, which may indicate market caution ahead of the earnings report, as investors might adopt a wait-and-see approach while awaiting critical financial data.
- Market Reaction: Despite the short-term decline in stock price, if the earnings report meets or exceeds analyst expectations, it could trigger renewed investor interest, potentially driving the stock price up and enhancing market confidence.
See More
AeroVironment Financial Results: Insights on the Iran Conflict, Stock Market Response, and Key Highlights in Today's Update
- Earnings Report: AeroVironment is set to report its fiscal third-quarter earnings on Tuesday evening.
- Industry Context: The earnings report comes at a significant time for the company and the drone industry, influenced by rising geopolitical tensions and ongoing conflicts in Iran.
See More
AeroVironment Q3 Earnings Preview: Strong Growth Expected
- Earnings Release Announcement: AeroVironment is set to release its Q3 earnings after the market closes on March 10, with expected earnings per share of 69 cents, a significant increase from 30 cents in the same period last year, indicating improved profitability.
- Strong Revenue Expectations: Analysts forecast that AeroVironment's quarterly revenue will reach $475.65 million, up from $167.64 million a year earlier, showcasing the company's robust performance amid rising market demand.
- Significant Contract Awarded: On March 5, the company announced it secured a $97.4 million contract under the U.S. Army’s Aviation and Missile Technology Consortium to develop advanced testing environments, which will enhance its technological capabilities and market position in the defense sector.
- Stock Price Movement: Despite the optimistic outlook, AeroVironment's shares fell 1.1% to close at $227.29 on Monday, reflecting market caution ahead of the upcoming earnings report.
See More
Top Rule Breakers Seek Innovation
- Vertex Drug Trial Success: Vertex Pharmaceuticals (VRTX) rose over 5% after the closing bell due to positive trial data from Povetacicept, enhancing the likelihood of a potential accelerated FDA approval filing, which is expected to further boost the company's stock performance, surpassing a 33% increase over the S&P 500 since February 2022.
- Hewlett Packard's Strong Earnings: Hewlett Packard (HPE) gained over 1% thanks to a 380% surge in Data Center Networking sales and an upgraded group revenue forecast, indicating robust growth potential in the market that may attract more investor interest.
- Casey's and Vail Resorts Earnings Pressure: Casey's General Stores (CASY) dropped about 2% ahead of the opening bell due to only a 0.5% revenue increase, while Vail Resorts (MTN) fell after reporting a 5% quarterly revenue drop, with the CEO citing weather impacts, highlighting challenges faced by the industry.
- BioNTech Faces Losses: BioNTech (BNTX) fell over 14% ahead of the opening bell as it reported an annual net loss nearly double that of the previous year and announced plans for co-founders to create an independent company focusing on next-generation mRNA innovations, which may affect its future market performance.
See More
Key Stock Market Movers: Occidental, Vertex, HPE, TSMC, Oracle, and Others
- Stock Market Movement: Stock futures were rising on Tuesday, indicating positive investor sentiment.
- Investor Sentiment: Investors are hopeful for a swift resolution to the ongoing war in Iran.
See More
