Group 1 - AeroVironment (AVAV) shares increased by 8.3% to close at $344.96, with a notable trading volume compared to normal sessions, and a total gain of 29.9% over the past four weeks [1] - U.S. President Donald Trump's proposal to increase military spending to $1.5 trillion for 2027 from the $901 billion budget for 2026 has bolstered expectations for sustained defense spending, positively impacting market sentiment towards defense-focused companies [2] - The favorable budget environment is beneficial for AeroVironment, which has significant exposure to unmanned aircraft systems and tactical missile solutions for the U.S. military, enhancing investor confidence despite no specific contract announcements [3] Group 2 - AeroVironment is expected to report quarterly earnings of $0.65 per share, reflecting a year-over-year increase of 116.7%, with revenues projected at $478.22 million, up 185.3% from the previous year [4] - The consensus EPS estimate for AeroVironment has been revised down by 40.3% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [5] - AeroVironment is categorized under the Zacks Aerospace - Defense Equipment industry, which includes other companies like BWX Technologies (BWXT), that also experienced a slight increase in stock price [5]

Key Points Defense companies could soon see larger orders from the U.S. military. Drone manufacturers are well-positioned to benefit. 10 stocks we like better than AeroVironment › Shares of AeroVironment (NASDAQ: AVAV) rose on Thursday, following President Trump's comments on increasing the U.S. military's budget. By the close of trading, the drone maker's stock price was up more than 8% after rising as much as 16.6% earlier in the day. Image source: Getty Images. President Trump wants to boost ...

Key Points Investors are speculating that international tensions will spur increased defense spending. President Trump wants to boost the nation's 2027 defense budget to $1.5 trillion. Shares of AeroVironement are trading at a premium to their historic valuation. 10 stocks we like better than AeroVironment › With its rise today, AeroVironment (NASDAQ: AVAV) stock extended its streak of locking in a gain every day this week. In addition to investors' suspicions that international political tension ...

US defense stocks are off to a strong start in 2026, extending last year’s stellar performance as geopolitical tensions ratchet higher and military spending plans rise to match them. Contractors L3Harris Technologies Inc. and Huntington Ingalls Industries Inc. have advanced 11% across the first five trading days of 2026, buoyed in part by a rally following the US military operation that removed Venezuela’s Nicolas Maduro from power. Major peers such as Northrop Grumman Corp. and Lockheed Martin Corp. have ...

Core Viewpoint - President Trump's recent statements have caused significant volatility in the defense sector, with threats to limit dividends and stock buybacks for defense contractors leading to a sharp decline in military stocks, followed by a strong rebound after his proposal to increase military spending to $1.5 trillion for fiscal year 2027, a 50% increase from the current budget of $901 billion [1][2][10]. Group 1: Market Reactions - Following Trump's statements, defense stocks experienced a dramatic rebound, with major companies like Lockheed Martin (LMT) rising over 9%, Northrop Grumman (NOC) nearly 11%, and Raytheon Technologies (RTX) up nearly 6% [5][9]. - The iShares U.S. Aerospace & Defense ETF (ITA) has seen a cumulative increase of over 50% in the past 12 months, reflecting strong performance in the defense sector [2]. - Global defense stocks also rose, with European defense stocks increasing by up to 3.8% on the same day, and notable gains in companies like BAE Systems and Rheinmetall [9]. Group 2: Budget Proposal and Challenges - Trump's proposal to increase the defense budget by 50% is historically rare, with the last similar increase occurring during the Korean War in 1951 [10]. - The feasibility of this budget increase faces challenges, as the Congressional Budget Office (CBO) estimates a budget deficit of 5.5% of GDP for the current year, with projected tax revenues falling short of the anticipated defense spending growth [10][11]. - Political hurdles exist, as the proposed budget would require significant support in the Senate, and there are concerns about whether defense contractors can absorb such a large increase in spending [11]. Group 3: Analyst Perspectives - Analysts generally express cautious optimism regarding the direction of U.S. defense spending, with expectations for higher expenditures amid stricter scrutiny of companies [12][13]. - Some analysts suggest that limiting capital returns could free up billions for capacity expansion or acquisitions, indicating a potential shift in investment strategies within the defense sector [13]. - The geopolitical landscape is driving increased defense spending, with analysts noting that the world is becoming a more dangerous place, further justifying the proposed budget increase [13][14].

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.In December, I reiterated my "Buy" rating for AeroVironment, Inc. ( AVAV ) with a $309.90 price target. As I am writing this report, the stock price has risen 30.8% to $318.48, surpassing my price target and outperforming the S&P 500, which gained ...

AeroVironment, Inc. (NASDAQ:AVAV) is one of the best strong buy stocks to invest in right now. AeroVironment, Inc. (NASDAQ:AVAV) was initiated with an Overweight rating by KeyBanc on December 18 with a $285 price target. The firm expressed optimism on the company’s solid leverage to defense space and tech growth, industry-leading margin, differentiated product portfolio, expansion into advanced cUAS/interceptors, competitive moat from defense backlog and BlueHalo acquisition, and expansion into advanced cU ...

The drone stock pulled back after a guidance cut.Shares of AeroVironment (AVAV +0.46%) were among the losers last month as the drone-maker posted a disappointing second-quarter earnings report and cut its guidance for the full year.Later in the month, the stock recouped some of those losses on favorable analyst commentary and as the Federal Communications Commission (FCC) announced a ban on some foreign drones, favoring domestic companies like AeroVironment.By the end of the month, the stock was down 13% ac ...

I have an interesting story to tell you today. Back in October, right at the absolute peak of the rally, I rated AeroVironment, Inc. ( AVAV ) as a Buy. Since then, the stock hasI write about stocks I’m personally interested in adding to my portfolio. I’m not a professional advisor, but I study business and economics and analyze markets full-time. My writing is meant for both complete beginners — I avoid unnecessary complexity — and advanced readers, as I always aim to offer a distinct and well-reasoned pers ...

I have an interesting story to tell you today. Back in October, right at the absolute peak of the rally, I rated AeroVironment, Inc. ( AVAV ) as a Buy. Since then, the stock hasI write about stocks I’m personally interested in adding to my portfolio. I’m not a professional advisor, but I study business and economics and analyze markets full-time. My writing is meant for both complete beginners — I avoid unnecessary complexity — and advanced readers, as I always aim to offer a distinct and well-reasoned pers ...