Stock Price & Analysis

Analysis and Insights

Technical Analysis:

AeroVironment (AVAV) is currently trading at $125.94 as of March 18, 2025. The stock shows signs of being oversold, with RSI values of 29.45 (RSI_12) and 29.96 (RSI_14), which are below the 30 threshold typically indicating oversold conditions. This could present a potential buying opportunity for investors looking to capitalize on a rebound.

Recent News and Sentiment:

• Cathie Wood’s ARK Investment has purchased 7,900 shares of AVAV, signaling institutional confidence in the stock.
• AeroVironment has secured a contract with the Defense Innovation Unit, highlighting its strategic position in the defense sector.
• Despite these positive developments, the stock has faced challenges, including a 21% decline over the past month, potentially due to mixed earnings results and broader market trends.

Valuation Analysis:

AeroVironment’s current valuation metrics show a forward P/E ratio of 33.32, which is slightly above the industry average. This suggests that investors are pricing in future growth expectations, though it also indicates a higher risk-reward profile.

Conclusion:

Given the oversold condition and recent positive developments, buying AVAV stock may be a good opportunity for investors seeking a rebound. However, caution is advised due to the stock's recent underperformance and broader market dynamics.

AeroVironment (AVAV) is predicted to reach $140.44 by year-end 2025, driven by strong demand for unmanned systems and recent contract wins. The stock is currently oversold with an RSI of 29.45, indicating a potential rebound.

The S1 support level for AVAV Stock is $121.63 ,The R1 resistant level for AVAV Stock is $128.83.

As of the end of day on 2025-03-24, the price of AVAV Stock was $128.74.

The target price for AVAV Stock according to analyst rating is 187.00, with the highest price target at 225.00 and the lowest at 146.00. Analysts have a Strong Buy rating on AVAV Stock overall.

The market cap of AVAV is $3.6B.

Analysis and Insights

AVAV appears overvalued based on its current valuation metrics.

1. High Valuation Metrics: AVAV's PE ratio of 71.15 and EV/EBITDA of 129.33 are significantly higher than industry averages, indicating a premium price relative to earnings and cash flow.
2. Recent Price Drop: The stock has fallen 21% in the past month, reflecting market concerns about its growth prospects despite its oversold RSI of 28.
3. Contract Wins: AVAV recently secured a contract from the Defense Innovation Unit, which could support long-term growth.
4. Mixed Earnings Performance: The company reported worse-than-expected Q3 results but highlighted progress in its long-term strategy.
5. Technical Resistance: The stock faces resistance at the Fibonacci R1 level of $140.44, suggesting limited upside in the near term.

AeroVironment, Inc. designs, develops, produces, delivers and supports a portfolio of intelligent, multi-domain robotic systems and related services for government agencies and businesses. It supplies unmanned systems (UMS), loitering munitions systems (LMS) and related services primarily to organizations within the United States Government and to international allied governments. Its segments include Unmanned Systems (UMS), Loitering Munition Systems (LMS) and MacCready Works (MW). The UMS segment focuses primarily on small, unmanned aircraft system (UAS) products, medium UAS products, and unmanned ground vehicles (UGV) products. The LMS segment focuses primarily on tube-launched aircraft that deploy with the push of a button and fly at higher speeds than small UAS products. It also includes customer-funded research and development programs. The MW segment focuses on research and development in the areas of robotics, sensors, software analytics, data intelligence and connectivity.

AeroVironment (AVAV) stock is predicted to reach $200 by 2030, driven by its leadership in the growing military drone market and strategic government contracts. The stock's current oversold condition (RSI of 28) suggests potential rebound upside. Recent contracts, like the Defense Innovation Unit agreement, support long-term growth prospects.

AVAV has a total of 1259 employees.