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
Should l Buy AVAV?
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: 196.180
Low
315.00
Averages
390.75
High
450.00
Current: 196.180
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 Secures $117.3M Contract for Drones
- Significant Contract Value: AeroVironment has secured a $117.3 million contract to supply P550 long-range reconnaissance systems (drones), indicating strong demand and market confidence in the defense sector.
- Order Flexibility: The contract stipulates that work locations and funding will be set per order, ensuring project flexibility and adaptability, thereby enhancing the company's competitiveness in a dynamic market environment.
- Project Completion Timeline: The project is expected to be completed by July 23, 2026, providing AeroVironment with a clear delivery target that aids in future financial planning and adjustments.
- Stock Price Reaction: On March 21, 2023, AeroVironment's shares traded slightly higher at approximately $198.77 in pre-market hours, following a decline of about 6.45% on March 20, reflecting a positive market response to the new contract.
See More
Global Drone Market Enters Rapid Growth Phase Driven by Defense Spending and AI
- Market Growth Drivers: The global drone market is projected to double from around $20 billion in 2020 to over $40 billion by 2025, reflecting strong demand growth, particularly driven by rising geopolitical tensions that boost defense sector demand.
- Technological Advancements: Advances in artificial intelligence have significantly enhanced drone capabilities, with analysts noting that defense applications have driven nearly half of the recent market growth, especially through low-cost one-way drone swarm deployments.
- Accelerated Defense Demand: Analysts expect the Iran war to accelerate production of tactical drones and counter-unmanned aerial systems, with AeroVironment and Kratos identified as the best-positioned stocks in the market, particularly in the one-way attack drone segment.
- Civilian Market Potential: Drone applications in civilian sectors such as agriculture, logistics, and delivery are expected to rise from 55% of the market today to 65% by 2035, highlighting the significant potential for drones to improve efficiency and reduce costs.
See More
Global Defense Spending Hits Record High, Starfighters Space Forms Strategic Partnership
- Record Defense Spending: In 2025, global military spending reached $2.7 trillion, with the top 100 defense companies generating $922 billion in revenue, indicating strong growth potential in the sector and attracting investor interest in emerging technologies and innovative firms.
- Strategic Partnership: Starfighters Space has formed a strategic partnership with Mu-G Technologies to provide microgravity flight missions for NASA and other clients, leveraging both parties' expertise to meet increasing demand in the aerospace market.
- Operational Expansion: Starfighters is expanding its operations at Midland International Air & Space Port in Texas, with plans to double the number of F-104 aircraft and engines within 18 months, enhancing mission cadence and geographic reach across the U.S. Southwest.
- Technological Innovation Progress: The STARLAUNCH 1 air-launch rocket program has entered the Critical Design Review phase, with wind tunnel tests confirming effective aerodynamic separation at supersonic speeds, further solidifying Starfighters' market position in aerospace testing services.
See More
Warren Questions DoD Contracts with Trump Family
- Lack of Transparency: Warren's letter to the Defense Secretary highlights the DoD's failure to adequately respond to her inquiries about the Trump family's involvement in defense contracts, indicating a troubling lack of transparency that could undermine public trust in the DoD's fairness.
- Potential Corruption Risks: Warren warns that the Trump family's business interests pose a corruption risk regarding DoD contracts, particularly with the involvement of Trump's children, which could compromise the impartial assessment of national security and defense needs.
- Drone Contract Controversy: Warren notes that the drone company Powerus, backed by Trump's children, is seeking DoD contracts while the Pentagon invests approximately $1 billion in domestic drone production, raising concerns about potential conflicts of interest.
- Inadequate DoD Response: The DoD's response to Warren's letter did not specifically address the interests of Trump's children or detail how contracts related to their interests are managed, reflecting the department's inability to effectively handle potential conflicts of interest.
See More
AeroVironment Launches New Laser Weapon System to Counter Drones
- System Introduction: AeroVironment unveiled the Locust X3 high-energy laser weapon system on Tuesday, aimed at countering drones and other unmanned threats, although its shares fell 2.3% during midday trading in New York, indicating a lukewarm market response.
- Technical Specifications: The system features a laser output ranging from 20 kilowatts to over 35 kilowatts, along with automated software for detection, tracking, and targeting, allowing integration across various environments including ground vehicles, fixed installations, and maritime platforms, enhancing operational flexibility.
- Cost Efficiency: Compared to conventional interceptors, the laser system offers a relatively low cost per engagement and operates without the need for physical ammunition reloads, with analysts noting that this feature is increasingly relevant as militaries face the growing use of low-cost drones and swarm tactics.
- Strategic Implications: The launch of the Locust X3 system signifies AeroVironment's deeper commitment to counter-drone and directed-energy technologies, aligning with the trend of increased defense spending, which is expected to bolster the company's competitiveness in the defense market.
See More
AeroVironment Launches LOCUST®X3 Laser Weapon System
- High-Energy Laser System Launch: AeroVironment introduces the LOCUST®X3, featuring a 20-35 kW laser output capable of defeating drone threats at under $5 per shot, significantly enhancing modern air defense capabilities to meet rapidly evolving battlefield demands.
- Modular Design Advantages: The LOCUST X3's modular design allows for seamless integration across various platforms, ensuring flexible deployment at tactical edges and fixed sites, thereby enhancing responsiveness to large-scale aerial threats.
- Sustained Operational Capability: This system is battle-tested, leveraging lessons from previous deployments to improve performance and maintainability, ensuring continuous defense in high-density threat environments and enhancing the security of critical infrastructure.
- AI-Driven Precision Engagement: The LOCUST X3 integrates AV_Halo™ software, providing precise target identification and tracking capabilities, allowing operators to focus on missions and improving operational efficiency and response speed.
See More
AeroVironment Secures $117.3M Contract for Drones
- Significant Contract Value: AeroVironment has secured a $117.3 million contract to supply P550 long-range reconnaissance systems (drones), indicating strong demand and market confidence in the defense sector.
- Order Flexibility: The contract stipulates that work locations and funding will be set per order, ensuring project flexibility and adaptability, thereby enhancing the company's competitiveness in a dynamic market environment.
- Project Completion Timeline: The project is expected to be completed by July 23, 2026, providing AeroVironment with a clear delivery target that aids in future financial planning and adjustments.
- Stock Price Reaction: On March 21, 2023, AeroVironment's shares traded slightly higher at approximately $198.77 in pre-market hours, following a decline of about 6.45% on March 20, reflecting a positive market response to the new contract.
See More
Global Drone Market Enters Rapid Growth Phase Driven by Defense Spending and AI
- Market Growth Drivers: The global drone market is projected to double from around $20 billion in 2020 to over $40 billion by 2025, reflecting strong demand growth, particularly driven by rising geopolitical tensions that boost defense sector demand.
- Technological Advancements: Advances in artificial intelligence have significantly enhanced drone capabilities, with analysts noting that defense applications have driven nearly half of the recent market growth, especially through low-cost one-way drone swarm deployments.
- Accelerated Defense Demand: Analysts expect the Iran war to accelerate production of tactical drones and counter-unmanned aerial systems, with AeroVironment and Kratos identified as the best-positioned stocks in the market, particularly in the one-way attack drone segment.
- Civilian Market Potential: Drone applications in civilian sectors such as agriculture, logistics, and delivery are expected to rise from 55% of the market today to 65% by 2035, highlighting the significant potential for drones to improve efficiency and reduce costs.
See More
Global Defense Spending Hits Record High, Starfighters Space Forms Strategic Partnership
- Record Defense Spending: In 2025, global military spending reached $2.7 trillion, with the top 100 defense companies generating $922 billion in revenue, indicating strong growth potential in the sector and attracting investor interest in emerging technologies and innovative firms.
- Strategic Partnership: Starfighters Space has formed a strategic partnership with Mu-G Technologies to provide microgravity flight missions for NASA and other clients, leveraging both parties' expertise to meet increasing demand in the aerospace market.
- Operational Expansion: Starfighters is expanding its operations at Midland International Air & Space Port in Texas, with plans to double the number of F-104 aircraft and engines within 18 months, enhancing mission cadence and geographic reach across the U.S. Southwest.
- Technological Innovation Progress: The STARLAUNCH 1 air-launch rocket program has entered the Critical Design Review phase, with wind tunnel tests confirming effective aerodynamic separation at supersonic speeds, further solidifying Starfighters' market position in aerospace testing services.
See More
Warren Questions DoD Contracts with Trump Family
- Lack of Transparency: Warren's letter to the Defense Secretary highlights the DoD's failure to adequately respond to her inquiries about the Trump family's involvement in defense contracts, indicating a troubling lack of transparency that could undermine public trust in the DoD's fairness.
- Potential Corruption Risks: Warren warns that the Trump family's business interests pose a corruption risk regarding DoD contracts, particularly with the involvement of Trump's children, which could compromise the impartial assessment of national security and defense needs.
- Drone Contract Controversy: Warren notes that the drone company Powerus, backed by Trump's children, is seeking DoD contracts while the Pentagon invests approximately $1 billion in domestic drone production, raising concerns about potential conflicts of interest.
- Inadequate DoD Response: The DoD's response to Warren's letter did not specifically address the interests of Trump's children or detail how contracts related to their interests are managed, reflecting the department's inability to effectively handle potential conflicts of interest.
See More
AeroVironment Launches New Laser Weapon System to Counter Drones
- System Introduction: AeroVironment unveiled the Locust X3 high-energy laser weapon system on Tuesday, aimed at countering drones and other unmanned threats, although its shares fell 2.3% during midday trading in New York, indicating a lukewarm market response.
- Technical Specifications: The system features a laser output ranging from 20 kilowatts to over 35 kilowatts, along with automated software for detection, tracking, and targeting, allowing integration across various environments including ground vehicles, fixed installations, and maritime platforms, enhancing operational flexibility.
- Cost Efficiency: Compared to conventional interceptors, the laser system offers a relatively low cost per engagement and operates without the need for physical ammunition reloads, with analysts noting that this feature is increasingly relevant as militaries face the growing use of low-cost drones and swarm tactics.
- Strategic Implications: The launch of the Locust X3 system signifies AeroVironment's deeper commitment to counter-drone and directed-energy technologies, aligning with the trend of increased defense spending, which is expected to bolster the company's competitiveness in the defense market.
See More
AeroVironment Launches LOCUST®X3 Laser Weapon System
- High-Energy Laser System Launch: AeroVironment introduces the LOCUST®X3, featuring a 20-35 kW laser output capable of defeating drone threats at under $5 per shot, significantly enhancing modern air defense capabilities to meet rapidly evolving battlefield demands.
- Modular Design Advantages: The LOCUST X3's modular design allows for seamless integration across various platforms, ensuring flexible deployment at tactical edges and fixed sites, thereby enhancing responsiveness to large-scale aerial threats.
- Sustained Operational Capability: This system is battle-tested, leveraging lessons from previous deployments to improve performance and maintainability, ensuring continuous defense in high-density threat environments and enhancing the security of critical infrastructure.
- AI-Driven Precision Engagement: The LOCUST X3 integrates AV_Halo™ software, providing precise target identification and tracking capabilities, allowing operators to focus on missions and improving operational efficiency and response speed.
See More
