AeroVironment to replace ChampionX in the S&P 400 at open on 7/18
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 15 2025
0mins
AeroVironment Replacement: AeroVironment (AVAV) will replace ChampionX Corp. (CHX) in the S&P MidCap 400, effective July 18.
ChampionX Acquisition: Schlumberger (SLB), a member of the S&P 500, is acquiring ChampionX, with the deal expected to close on July 16.
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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: 182.260
Low
315.00
Averages
390.75
High
450.00
Current: 182.260
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, uncrewed aircraft systems (UAS), precision strike systems, counter-UAS (C-UAS) technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities. Its 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 UAS, uncrewed underwater vehicles and ground robot systems. It primarily serves organizations within or supplying the U.S. Department of Defense (DoD), other federal agencies, and international allied governments. 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.
- Government Investment Boost: AV's Huntsville facility receives a $20.2 million government investment aimed at increasing Low-Rate Initial Production (LRIP) quantities and accelerating Full-Rate Production of the Next-Generation Counter-Unmanned Aircraft System Missile, Freedom Eagle-1, indicating strong growth potential in the defense sector.
- Production Capacity Enhancement: The expanded 24,000-square-foot facility will serve as the system integration, manufacturing, and production hub for Freedom Eagle-1, enabling rapid scale-up of interceptor production to meet urgent U.S. Army and Combatant Command needs, thereby enhancing the company's competitiveness in the defense market.
- Increased Technical Maturity: The Freedom Eagle-1 system has achieved several key development milestones, including successful live-fire demonstrations of its dual-thrust solid rocket motor and warhead testing, demonstrating technical maturity and reduced risk as it transitions toward field deployment.
- Significant Economic Impact: This expansion is expected to bolster defense manufacturing and innovation in Alabama, further solidifying AV's strategic focus on scaling domestic manufacturing capacity, while aligning with a recent $30 million expansion in New Mexico projected to generate over $670 million in economic impact over the next decade.
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- Geopolitical Tensions: U.S. stock index futures edged lower on Thursday as tensions between the U.S. and Iran escalated, dampening hopes for an imminent peace deal and potentially impacting market sentiment.
- Oil Price Surge: Following fresh U.S. strikes against Iran, oil prices jumped over 2%, exacerbating inflation concerns that could influence the Federal Reserve's monetary policy decisions moving forward.
- Inflation Data Focus: Investors are closely watching the upcoming personal consumption expenditures data, which is the Fed's preferred inflation measure, as it could alter interest rate expectations under new chair Kevin Warsh's leadership.
- Market Performance: Dow futures declined by 53 points, S&P 500 futures fell by 6.75 points, and Nasdaq 100 futures dropped by 63.5 points, reflecting market uncertainty regarding the economic outlook ahead.
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- Lawsuit Background: A securities class action lawsuit has been filed against AeroVironment for failing to disclose competitive risks related to the SCAR program during the class period from June 25, 2025, to March 10, 2026, alleging that the company misrepresented its financial prospects, leading to investor losses.
- Concealed Competition Risks: The complaint alleges that AeroVironment underestimated the imminent competition from other vendors, which resulted in a significant overstatement of its business outlook, thereby misleading investors about the company's true financial health.
- Stock Price Plunge: Following the announcement of a stop work order on January 20, 2026, AeroVironment's stock price fell by $61.97, or 15.77%, closing at $330.89, reflecting market concerns over the company's future prospects and operational stability.
- Investor Action Required: Investors are urged to contact Gainey McKenna & Egleston before the July 27, 2026, lead plaintiff motion deadline to ensure their rights are represented in the class action lawsuit.
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- Class Action Initiation: Purchasers of AeroVironment, Inc. securities between June 25, 2025, and March 10, 2026, have until July 27, 2026, to seek lead plaintiff status in a class action lawsuit alleging violations of the Securities Exchange Act of 1934, potentially exposing investors to significant losses.
- Acquisition Impact: On May 1, 2025, AeroVironment announced the acquisition of BlueHalo, LLC, which supports the U.S. Space Force's Satellite Communication Augmentation Resource (SCAR) program; however, the lawsuit claims the company failed to disclose imminent competition, misleading investors about its financial prospects.
- Contract Termination Consequences: On January 20, 2026, AeroVironment received a stop work order from the U.S. government regarding its BADGER systems, causing a nearly 16% stock price drop and prompting a reassessment of the SCAR program, which heightened market uncertainty.
- Financial Loss Disclosure: In its third-quarter fiscal 2026 report, AeroVironment reported an operating loss of $179 million, a stark increase from a $3.1 million loss in the same period of 2025, reflecting a $151.3 million goodwill impairment in its space division due to the stop work order, leading to an additional stock price decline of over 6%.
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- Government Investment: The U.S. government is investing $20.2 million into AeroVironment's Huntsville facility to enhance the initial production capacity of the Freedom Eagle-1 interceptor missile, indicating a shift towards large-scale production that could create long-term revenue opportunities for the company.
- Facility Expansion: The expansion will add 24,000 square feet (approximately 2,229.67 square meters) to the site, establishing it as the primary integration and production hub for the Next-Generation Counter-Unmanned Aircraft System Missile program, which will also support hiring growth in Huntsville, solidifying the region's role in U.S. missile defense activities.
- Contracts and Progress: AeroVironment previously disclosed a $95.9 million contract related to the NGCM and Long-Range Kinetic Interceptor programs, reflecting the company's ongoing investment in defense modernization, particularly in countering drone and aerial threats.
- Market Strategic Positioning: CEO Wahid Nawabi stated that increasing their presence in Huntsville will integrate AeroVironment more closely into the Army's air and missile defense ecosystem, enabling more efficient production and faster iterations, thereby enhancing their competitive edge in the market.
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- Government Investment Acceleration: The U.S. government is investing $20.2 million in AeroVironment's Huntsville, Alabama facility to accelerate the production of Freedom Eagle-1 interceptor missiles, aimed at meeting urgent U.S. Army and Combatant Command needs, thereby enhancing the company's market competitiveness.
- Strengthened Contract Foundation: This investment builds on a recent $95.9 million contract awarded by the U.S. Army, reflecting the company's strategy to scale domestic manufacturing capacity, which is expected to significantly improve production efficiency and reduce delivery times.
- Rising Market Demand: Amid the global geopolitical crisis, demand for interceptor missiles in the defense sector has surged, with AeroVironment's stock rising nearly 6% following the investment announcement, indicating market confidence in its future growth potential.
- Strategic Expansion Plans: The company is also undertaking a $30 million campus expansion project in Albuquerque, New Mexico, further enhancing its production capabilities to address increasingly complex aerial threats and improve overall defense capabilities.
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