Should you buy AeroVironment Inc. (AVAV) stock?


AeroVironment Inc. (AVAV) got a big boost from the news in the last year. Now, a new “persona” – the Perseverance rover – could give the AeroVironment Inc. a big boost. AVAV stock has experienced strong growth over the past months. In addition to the past-month loss of -13.24%. AVAV stock has also witnessed a 41.25% gain in three months and an 83.48% gain in six months.

On 03/16/21, AeroVironment Inc. (NASDAQ: AVAV) started the day down -1.12% at $118.51. Stocks rose to $123.62 during the day and fell to $117.12 shortly after settling in at the closing price of $118.51. With a more long-term perspective, AVAV posted a 52-week range of $45.00-$143.71.

Drones have proved to be successful in modern warfare over the past year, and AeroVironment continues to win defense contracts. The Pentagon awarded the AVAV stock a $6 million contract last week for the UAV supply to an unnamed European ally. Within the defense sector, AeroVironment has various highly accurate and compact loitering ammunition, including the Switchblade.

However, the main focus of AeroVironment this year will be the Perseverance rover’s mission. It is equipped with an Ingenuity helicopter developed by AeroVironment; a year ago, a small Ingenuity helicopter, weighing only 2 kg, was launched to Mars. A rover recently examined the helicopter’s mounting on the bottom – finding everything to be in order.

After the rover travels 300 meters from the landing site, the helicopter will drop onto the surface of Mars. A sample flight is needed to prove a spacecraft’s capability to fly in the Martian atmosphere to evaluate controllability and power consumption.

Mars’s rarefied atmosphere requires extremely high propeller speeds to fly autonomously. Assume AeroVironment can prove its performance even under such conditions. Therefore, AeroVironment Inc. (AVAV) will become a UAV research leader and strengthen its image.


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