Why AeroVironment Stock Jumped 18% in October

Group 1 - AeroVironment's shares increased by 17.5% by the end of the month, driven by positive analyst responses to its investor open house and a significant contract with the U.S. Air Force [1][3][6] - The company announced a new 10-year, $499 million contract with the U.S. Air Force Research Lab, which contributed to a 10% stock jump on October 1 [6][4] - Analysts raised their price targets for AeroVironment following the open house, citing strong order momentum and an expanding addressable market projected to reach at least $75 billion by fiscal 2030 [5][6] Group 2 - The launch of a new electric vertical takeoff and landing (eVTOL) platform was overshadowed by comments from Treasury Secretary Scott Bessent, which suggested defense companies should focus on fulfilling orders rather than share buybacks [2][7] - Following the Treasury Secretary's comments, AeroVironment's stock experienced a decline of 4% on October 15, reflecting broader negative sentiment in the defense sector [7][4]