AeroVironment, Inc. (NASDAQ:AVAV) stands out as one of Cathie Wood’s 10 stock picks with huge upside potential. Strong Analyst Sentiment on AeroVironment (AVAV) Amid Improving Momentum in Space and Defense Technology As of February 2, 2026, nearly all analysts covering AeroVironment, Inc. (NASDAQ:AVAV) remain bullish, with a 46.50% consensus upside potential. Analyst sentiment remains strong amid a series of developments late in January that further draw investor attention to the stock. On January 28, 2 ...

Company Performance - AeroVironment (AVAV) stock closed at $257.30, reflecting a -9.85% change from the previous day's closing price, which is less than the S&P 500's daily loss of 0.51% [1] - Over the past month, shares of AeroVironment have decreased by 9.97%, while the Aerospace sector gained 6.61% and the S&P 500 gained 0.93% [1] Upcoming Financial Results - The upcoming EPS for AeroVironment is projected at $0.72, indicating a 140.00% increase compared to the same quarter of the previous year [2] - Revenue is expected to reach $479.86 million, showing a 186.24% increase compared to the year-ago quarter [2] Full Year Estimates - Analysts expect earnings of $3.46 per share and revenue of $2 billion for the full year, marking changes of +5.49% and +143.43% respectively from last year [3] - Recent changes to analyst estimates for AeroVironment are important as they reflect evolving short-term business trends, with positive revisions indicating a favorable business outlook [3] Valuation Metrics - AeroVironment is currently traded at a Forward P/E ratio of 82.41, which is a premium compared to the industry average Forward P/E of 35.91 [6] - The company has a PEG ratio of 4.22, while the Aerospace - Defense Equipment industry has an average PEG ratio of 2.19 [6] Industry Context - The Aerospace - Defense Equipment industry is part of the Aerospace sector and currently holds a Zacks Industry Rank of 60, placing it in the top 25% of all industries [7] - The Zacks Industry Rank assesses the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

In this piece, we will cover Cathie Wood’s 10 Stock Picks with Huge Upside Potential.In a CNBC Squawk Box Interview on January 16, 2026, Cathie Wood outlined her outlook for 2026, a year in which she sees a concentrated set of stocks with significant upside potential.The ARK Invest CEO looked back at 2025, discussing sharp volatility, trade turmoil in April, and the government shutdown. Despite macroeconomic headwinds, ARK Invest funds ranked among Morningstar’s top performers.The firm’s investment strategy ...

Core Viewpoint - Aerovironment is positioned to benefit from increased military spending, particularly with the potential expansion of the military budget and its leadership in the drone sector [1][2][8] Group 1: Stock Performance - Aerovironment's stock experienced significant volatility, gaining 15% in January despite a decline in the latter half of the month [3][5] - The stock initially surged due to President Trump's proposal to increase the military budget from $1 trillion to $1.5 trillion, resulting in an 8% jump [2][5] - A stop work order from the U.S. government for a specific project contributed to the stock's decline after peaking on January 16 [6] Group 2: Financial Performance - The company reported organic revenue growth of 21%, reaching $227.4 million in its most recent quarter, with total revenue of $472.5 million including the BlueHalo acquisition [7] - Aerovironment recorded bookings of $1.4 billion, indicating strong future growth potential [7] Group 3: Market Position and Future Outlook - Aerovironment is a leader in providing unmanned aerial systems to the military and is expected to strengthen its position following the BlueHalo acquisition [8] - The drone technology sector is anticipated to grow, with Aerovironment poised to capitalize on this trend, supported by a current market cap of $14 billion [8]

AeroVironment, Inc. (NASDAQ:AVAV) is one of the 10 best NASDAQ growth stocks to buy for the next 10 years. On January 28, KeyBanc analyst Michael Leshock raised the firm’s price target on AeroVironment, Inc. (NASDAQ:AVAV) from $285 to $330 while maintaining a Buy rating. The firm’s upwardly adjusted price target indicates a further 12.5% upside from current levels. AeroVironment, Inc. (AVAV) Is Part Of An "Idea-Driven" Market, Says Jim Cramer The firm said that it is updating its outlook on the industry ...

Cathie Wood's ARK Makes $18 Million Defense Bet; Woodward Spikes On Q4 Trounce | Investor's Business DailyBREAKING: [Tech Futures Lead Gains As Teradyne, Palantir Surge]---Woodward stock soared early Tuesday, set to breakout on earnings and a major price target hike. Cathie Wood and her ARK Invest firm loaded up on nearly $18 million worth of defense stocks Monday, including heavyweights Lockheed Martin, L3Harris and AeroVironment. Woodward (WWD), a maker of fuel controls, ignition systems and airframes for ...

Core Insights - Global defense spending is increasing due to geopolitical tensions, benefiting companies like AeroVironment, Inc. (AVAV) and L3Harris Technologies, Inc. (LHX) [1] - Investments in unmanned systems, satellite communications, space hardware, cyber defense, and advanced weapons are creating favorable conditions for both companies [1] Summary of AeroVironment (AVAV) - AVAV specializes in unmanned aerial systems and space-qualified hardware for various orbits and cislunar missions [2] - The company has expanded its defense footprint with a $75 million task order from the U.S. Air Force for biotechnology and materials science development [4] - AVAV has made progress in advanced airspace operations by installing a new Beyond Visual Line of Sight (BVLOS) airspace management facility [5] - The Zacks Consensus Estimate for AVAV's fiscal 2026 EPS is $3.46, indicating a 5.5% growth, with revenue estimates at $2.00 billion, reflecting a 143.4% increase [10] Summary of L3Harris Technologies (LHX) - LHX is a diversified defense contractor with strong capabilities in communications, space systems, electronic warfare, and tactical networks [2] - The company reported Q4 2025 revenues of $5.65 billion, a 2.4% increase from the previous year, and EPS improved to $2.86, representing a 10.0% year-over-year growth [6] - LHX delivered the first MC-55A aircraft to the U.S. Air Force and secured a contract for a next-generation imaging payload for South Korea's GEO-KOMPSAT-5 satellite [7][8] - The Zacks Consensus Estimate for LHX's 2026 EPS is $12.39, indicating a 16.3% year-over-year growth, with revenue estimates at $23.40 billion, showing a 6.5% increase [11] Comparative Analysis - LHX has outperformed AVAV in stock price performance, with a 23.1% gain compared to AVAV's 20.8% decline over the past three months [12] - LHX's valuation is more attractive, trading at a forward Price/Sales (P/S F12M) multiple of 2.83X compared to AVAV's 6.47X [15] - LHX is positioned as the stronger stock due to its diversified operations, steady growth, and attractive valuation, making it a better option for investors seeking growth and reliability in the defense sector [17]

Core Viewpoint - AeroVironment, Inc. is positioned to benefit from increasing geopolitical spending and defense priorities, with analysts maintaining positive ratings and price targets for the stock [1][2][3]. Group 1: Analyst Ratings and Price Targets - Citizens analysts reiterated a Market Outperform rating on AeroVironment, Inc. with a price target of $400 [1]. - RBC Capital also maintained an Outperform rating with a price target of $375, despite a stop-work order from the US Department of Defense affecting a key program [3]. Group 2: Company Positioning and Growth Opportunities - The company is well-positioned to leverage US defense tailwinds and global defense priorities, which are driving rapid funding and procurement in aerospace [2]. - A merger with BlueHalo is anticipated to enhance AeroVironment's capabilities in drone and cyber spaces, creating a scaled design-to-production engine [2]. - The company has a strong international base that serves as a second growth engine [2]. Group 3: Product and Market Focus - AeroVironment is a leader in defense technology, specializing in intelligent, multi-domain robotic systems, including drones, loitering munitions, and counter-UAS solutions for various clients [4].

Core Viewpoint - AeroVironment, Inc. will participate in TD Cowen's Annual Aerospace & Defense Conference, indicating its active engagement in the aerospace and defense sector [1] Company Participation - The executive vice president and MacCready Works Group General Manager, Jeffrey Rodrian, along with the Head of Investor Relations, Denise Pacioni, will be involved in a fireside chat [1] - The event is scheduled for February 11, 2026, at 8:30 a.m. ET, showcasing the company's commitment to investor relations and transparency [1] Event Details - The fireside chat will be available via webcast, allowing broader access to stakeholders and interested parties [1]

Core Viewpoint - Defense and aerospace stocks are expected to continue their strong performance in 2026 due to rising geopolitical tensions and increased defense spending globally [1][2]. Geopolitical Context - The geopolitical landscape is shifting towards decentralized deterrence, leading to increased policy uncertainty [3]. - The U.S. military budget is proposed to increase to $1.5 trillion from $901 billion, which is a significant driver for defense stock gains [3]. Market Performance - The S&P Aerospace & Defense Select Industry Index has risen by 14% year-to-date, significantly outperforming the S&P 500, which has only increased by 1% [2]. - European countries are expected to increase their defense budgets to up to 3% of GDP, resulting in a projected 140% to 240% increase in spending on defense equipment [5]. Company Highlights - **Textron Inc. (NYSE:TXT)**: - Year-to-date gain of 10.96% with 36 hedge fund holders [11]. - Secured a $163.4 million contract to provide military vehicles to Ukraine [11][12]. - Analysts at Jefferies raised the price target to $115, expecting solid financial results [13]. - **AeroVironment, Inc. (NASDAQ:AVAV)**: - Year-to-date gain of 21.08% with 37 hedge fund holders [15]. - Analysts expect the company to benefit from U.S. and global defense priorities, with a price target set at $400 [15][16]. - Despite a stop-work order from the U.S. Department of Defense, RBC Capital maintains an Outperform rating with a price target of $375 [17].