AeroVironment, Inc. (AVAV) Down 9.7% — Should I Move My Capital Elsewhere?
AeroVironment, Inc. (AVAV) came under heavy pressure in the latest session, sliding 9.72% to close at $254.06. The stock surrendered $27.36 from the prior close of $281.42, extending a retreat that leaves shares losing ground in the near term. Trading activity was elevated, with volume reaching 2,080,788 shares, more than double the 90-day average of 999,555, underscoring the intensity of the latest move lower. The pickup in trading alongside a nearly double-digit percentage decline points to a market that is actively repricing the stock and suggests sellers were firmly in control throughout the session.
From a longer-term perspective, the stock remains well below its 52-week peak of $417.86, set on Oct. 9, 2025, highlighting how far it has fallen from prior highs. At current levels, AVAV is trading more than $160 under that recent high-water mark, reinforcing the view that the shares have been retreating and remain under pressure despite earlier strength over the past year. Within the broader aerospace and industrial technology landscape, sector peers such as The Boeing Company (BA), Rocket Lab Corporation (RKLB), Fortive Corporation (FTV), QXO, Inc. (QXO) and Chart Industries, Inc. (GTLS) have also seen periods of volatility, but AVAV’s latest single-session drop stands out in magnitude. For now, the stock’s recent price action reflects a market that is recalibrating expectations and leaving the shares facing notable headwinds.
Why AeroVironment, Inc. Price is Moving Lower
AeroVironment shares are facing pressure as investors digest more restrained expectations from Wall Street. Cantor Fitzgerald’s decision to cut its price target to $315, even while keeping an “Overweight” rating, signals that prior growth assumptions may have been too aggressive. That kind of downward revision tends to force a reset in sentiment, especially after a strong run, as the market re-prices the stock for more moderate upside. The lack of fresh company-specific catalysts this week — no new contracts, earnings, or product launches — leaves the stock vulnerable to this negative drift in expectations rather than supported by new fundamental developments.
At the same time, some of AeroVironment’s own financial metrics are raising caution flags. Revenue growth is strikingly strong, with the latest quarter up to $454.68 million versus $275.05 million previously, a 65%-plus sequential jump and roughly 140% growth over the prior year. Yet this rapid top-line expansion is not translating into profitability: The company is still posting a negative EPS of -$0.65 and a profit margin of -4.13%. That combination — fast growth but ongoing losses — tends to invite scrutiny about execution risk, cost control, and the sustainability of recent gains. In an Industrials and defense landscape where peers such as Boeing, Rocket Lab, Fortive, QXO, and Chart Industries have also seen bouts of volatility, investors appear increasingly wary of paying up for growth stories that are not yet consistently profitable, adding to the downward pressure on AeroVironment’s stock.
What is the AeroVironment, Inc. Rating - Should I Sell?
Weiss Ratings assigns AVAV a D rating. Current recommendation is Sell. This is a deteriorating profile, with the stock most recently downgraded on 12/1/2025, signaling that risk now clearly outweighs the potential reward for new money and that existing shareholders face meaningful downside if conditions do not improve.
The D rating comes despite eye-catching top-line growth. Revenue expanded by 139.96%, but this has not translated into sustainable profitability or shareholder protection. The Weak Growth Index and Weak Efficiency Index point to a business that is struggling to convert rapid expansion into healthy margins and solid returns on capital. A negative profit margin of -4.13% and an extremely stretched forward P/E ratio of -436.24 indicate investors are paying a high price for earnings that are currently underwater, leaving little margin for error.
On the risk side, the Excellent Solvency Index indicates a strong balance sheet and good ability to meet obligations, but that strength is offset by a Weak Volatility Index, signaling choppy price behavior and elevated downside swings. The Good Total Return Index shows that past performance has been better than the fundamentals might suggest, but the overall D rating indicates those gains have come with excessive risk and may be difficult to sustain.
Within Industrials, AeroVironment, Inc. sits in the same weak neighborhood as peers like The Boeing Company (BA, D-), Rocket Lab Corporation (RKLB, D-), and Chart Industries, Inc. (GTLS, D+). In this context, AVAV’s D rating marks it as an underperformer relative to safer alternatives, reinforcing the need for caution.
About AeroVironment, Inc.
AeroVironment, Inc. (AVAV) is an Industrials company operating within the Capital Goods industry, focused primarily on unmanned aircraft systems and related technologies. The company develops and manufactures small unmanned aircraft systems (UAS) used for intelligence, surveillance and reconnaissance missions, mainly for defense and security customers. Its portfolio includes hand-launched and portable drones designed for tactical use at the unit and platoon level, providing short-range situational awareness rather than large-scale, long-endurance capabilities. AeroVironment also supplies associated ground control systems, support equipment and training services, creating dependence on long-term government procurement cycles and contract renewals.
Beyond small UAS, AeroVironment participates in loitering munition systems, sometimes referred to as tactical missile systems, which are designed to identify and strike targets with precision. It also offers unmanned ground vehicles and certain high-altitude pseudo-satellite platforms, although these remain niche solutions in broader aerospace and defense markets. The company markets its systems largely to the U.S. Department of Defense and allied defense ministries, resulting in high customer concentration and exposure to shifting defense budgets, program priorities and regulatory constraints. In the Capital Goods sector, AeroVironment’s specialization in small tactical systems gives it a narrow competitive foothold compared with larger diversified defense contractors that can spread risk across multiple platforms, domains and end markets.
Investor Outlook
With AeroVironment, Inc. carrying a D (Sell) Weiss Rating, investors may want to closely monitor whether recent performance trends improve enough to justify the current risk profile. Key watchpoints include how the stock behaves around recent support and resistance zones, along with broader Industrials sector sentiment that could either cushion or amplify downside pressure. See full rankings of all D-rated Industrials stocks inside the Weiss Stock Screener.
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