Why AeroVironment Stock Is Soaring Higher This Week

Group 1 - AeroVironment stock has increased by 33.3% from the end of trading last Friday to the close of today's market session [2] - Investors are speculating that international tensions will spur increased defense spending, particularly in light of recent military actions and President Trump's comments on the defense budget [4][8] - President Trump proposed increasing the 2027 defense budget from $1 trillion to $1.5 trillion, which has further fueled investor interest in defense stocks like AeroVironment [5][8] Group 2 - AeroVironment shares are currently trading at a premium, with a price of 79.8 times operating cash flow compared to a five-year average of 34.9 [6] - Given the high valuation, investors may consider defense-focused exchange-traded funds (ETFs) as an alternative to individual stocks like AeroVironment [6]