AeroVironment, Inc. (AVAV) Up 4.9% — Do I Make This Trade Today?
AeroVironment, Inc. (AVAV) staged a strong advance in the latest session, finishing at $397.20, up 4.92% and gaining $18.63 from the prior close of $378.57. The move reflects bullish activity as the stock continues to gain ground near the upper end of its 52-week range between $102.25 and $417.86. With shares now less than $21 below their 52-week peak, AVAV is trading in firmly elevated territory, underscoring persistent upward momentum over the past year and signaling sustained interest from market participants as it hovers close to record levels.
Trading volume came in at 782,568 shares, below the 90-day average of 1,200,699, indicating that the latest surge in price occurred on lighter-than-usual activity. Even so, the magnitude of the 4.92% climb highlights strong price action despite the subdued turnover. Within the broader industrial and defense-oriented group, AVAV’s recent performance stands out, as many sector peers such as GE Vernova Inc. (GEV), Deere & Company (DE), and Honeywell International Inc. (HON) have generally shown more measured moves in comparison. The combination of a sharp single-day gain, proximity to a 52-week high, and continued upward bias in the chart positions AVAV as one of the more aggressively advancing names in its space, with price action that clearly reflects ongoing bullish momentum.
Why AeroVironment, Inc. Price is Moving Higher
AeroVironment, Inc. is benefiting from a clear wave of investor enthusiasm, driven by increasingly positive analyst coverage and growing confidence in its defense technology outlook. The recent 9% surge on Jan. 9, 2026, followed Bank of America Securities’ reaffirmed “Buy” stance, highlighting rising domestic and international demand for the company’s systems. That call added momentum to bullish positioning that began in December, when KeyBanc initiated coverage with an “Overweight” rating and a $285 price target, underscoring AeroVironment’s unique product lineup and leverage to defense and space-related growth. Options market data showing an 8.3% gain the same day points to active institutional participation and strengthening conviction that current geopolitical and defense spending trends favor AeroVironment’s niche.
Fundamentals are reinforcing this sentiment. Quarterly revenue has climbed from $454.68 million to $472.51 million, a 3.9% sequential increase, and revenue growth of more than 150% over the prior year signals that the company is rapidly scaling. That expansion is happening even as profit margins remain negative, suggesting investors are prioritizing top-line momentum and long-term positioning over near-term earnings. The stock’s strong year-to-date advance, yet still trading below its 52-week high, is also fueling the view that there may be additional upside if execution stays on track. Compared with established industrial and defense names such as GE Vernova, Deere, and Honeywell, AeroVironment’s specialized role in unmanned and advanced defense technologies is a key differentiator supporting the current upward price momentum.
What is the AeroVironment, Inc. Rating - Should I Buy?
Weiss Ratings assigns AVAV a C rating. The stock was upgraded on 1/14/2026, and current recommendation is Hold. This C rating indicates an overall, risk-adjusted profile that is about in line with the broader market, balancing some compelling strengths with areas that still need to improve before the stock could move into Buy territory.
On the positive side, AeroVironment, Inc. stands out for its balance sheet quality, supported by an Excellent Solvency Index. That strength can give investors added confidence that the company is well-positioned to meet its obligations and continue funding its operations. The company has also delivered powerful top-line expansion, with revenue growth of 150.72%, showing it is capturing meaningful demand in its niche within the Industrials space.
At the same time, the path to stronger ratings runs through profitability and efficiency. The Weak Growth Index and Weak Efficiency Index show that, despite robust revenue gains, the company is still working to convert that growth into consistent, sustainable earnings and attractive returns on capital. This is reflected in its negative profit margin of -5.07% and a deeply negative forward P/E ratio of -300.83, which signal that investors are paying up today for earnings that are expected, rather than already realized.
Within Industrials, AeroVironment’s C rating is in line with peers such as GE Vernova Inc. (GEV, C), Honeywell International Inc. (HON, C), and Deere & Company (DE, C+). For investors, AVAV offers a balanced, middle-of-the-road profile: financial stability and strong revenue momentum, offset by weaker execution on profitability and overall return.
About AeroVironment, Inc.
AeroVironment, Inc. is a specialized defense and aerospace technology company focused on advanced robotic systems and mission-critical solutions for government and commercial customers worldwide. Operating through its Autonomous Systems and Space, Cyber and Directed Energy segments, the company designs, develops, produces and supports a broad portfolio of uncrewed platforms and enabling technologies. Its offerings span small and medium uncrewed aircraft systems (UAS), counter-UAS capabilities and precision strike loitering munitions, all integrated with its kinesis command-and-control software to deliver actionable intelligence and enhanced situational awareness to modern warfighters.
Beyond airborne platforms, AeroVironment has built a diversified presence across autonomy, AI-enabled systems and multi-domain robotics, including unmanned maritime and uncrewed ground systems, as well as high-altitude pseudo-satellites for persistent surveillance and communications. The company is also a key player in advanced communications and sensing solutions for space and defense applications. Its portfolio includes digital beamforming technology and multi-band, software-defined antenna tiles supporting simultaneous connections with multiple satellites, laser communications for high-bandwidth space operations, and space-qualified hardware for line-of-sight stabilization and control across low, medium, geostationary and cislunar orbits.
AeroVironment further extends its capabilities into phased array antenna technology for hypersonic telemetry and missile testing, directed energy solutions, and cyber offerings tailored to national security missions. Its HaloCortex OSINT platform leverages AI-driven open-source intelligence to address complex Department of Defense and commercial challenges. With a heritage dating back to 1971 and headquarters in Arlington, Virginia, the company is positioned as a technology leader within the industrials and capital goods landscape, particularly in uncrewed systems, space technologies and defense-focused autonomy.
Investor Outlook
With a C (Hold) Weiss Rating, AeroVironment, Inc. (AVAV) presents investors with potential for continued gains while warranting close attention to how execution and profitability trends evolve. From here, the key factors to watch are whether price action can sustain strength relative to peers and how sector demand for defense and unmanned systems develops. See full rankings of all C-rated Industrials stocks inside the Weiss Stock Screener.
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