Several drone stocks surged on July 11 after the United States Department of Defense (DoD) released a memo with highly bullish implications for the industry. In the memo titled “Unleashing U.S. Military Drone Dominance," Secretary of Defense Pete Hegseth shared his vision for increased U.S. drone production and use.
AeroVironment NASDAQ: AVAV investors have been on a stomach-churning rollercoaster. The unmanned systems leader saw its stock price surge to a new 52-week high, reaching nearly $295 per share, after releasing a blockbuster earnings report on June 24, 2025.
AeroVironment shares fell after the defense contractor said it plans to offer $750 million in common stock and $600 million in convertible senior notes. The drone maker said it would use the funding to pay off debt and use leftover proceeds for general purposes such as boosting manufacturing capacity.
The U.S. defense industry is unmatched, backed by nearly $1 trillion in annual spending, supporting my long-standing investment in dividend-paying giants. A new wave of disruptors is shaking things up, blending AI and autonomy to chase growth, but sky-high valuations demand caution and realism. I prefer reliable incumbents, but I'm closely tracking promising innovators, because in this evolving battlefield, both camps may win big.
BLIN, AVAV and COLD have been added to the Zacks Rank #5 (Strong Sell) List on June 27, 2025.
AeroVironment (NASDAQ:AVAV), a prominent drone manufacturer, experienced a stock surge of over 20% on June 25th following the release of stronger-than-anticipated Q4 results (the fiscal year concludes in April). The company's adjusted earnings of $1.61 per share and sales of $275 million significantly exceeded the consensus forecasts of $1.39 and $242 million, respectively.
AeroVironment's NASDAQ: AVAV stock price is expected to reach a new high this year, as the Q4 results and guidance have affirmed bullish analysts' expectations, resulting in a bullish technical signal with significant upside implications. The signal is a Bullish Flag Pattern, a continuation signal indicating that the $50 price rally preceding it is likely the first half of a larger movement.
AeroVironment's transformation via the BlueHalo merger positions it as a diversified defense-tech prime, expanding into air, land, sea, space, and cyber domains. FY 2026 guidance calls for $1.9-$2.0 billion revenue and $300-$320 million EBITDA, with strong contract momentum and a $726 million funded backlog. Integration risks and valuation concerns exist, but robust growth, new products, and cross-selling opportunities underpin long-term upside potential.
AeroVironment, Inc. (NASDAQ:AVAV) is one of the best stocks on the Nasdaq today, last seen up 27% to trade at $244.55.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Drone maker AeroVironment shares pop 20% on earnings beat
AeroVironment, Inc. (NASDAQ:AVAV ) Q4 2025 Earnings Conference Call June 24, 2025 4:30 PM ET Company Participants Denise Pacioni - Corporate Participant Kevin Patrick McDonnell - Senior VP & CFO Wahid Nawabi - Chairman of the Board, President & CEO Conference Call Participants Andre Madrid - BTIG, LLC, Research Division Gregory Arnold Konrad - Jefferies LLC, Research Division Jonathan Siegmann - Stifel, Nicolaus & Company, Incorporated, Research Division Michael Louie D DiPalma - William Blair & Company L.L.C., Research Division Peter J.