Zacks says AeroVironment holds edge over Redwire among aerospace and defense stocks

Zacks Investment Research··Read original
2▲1 ▼1Impact / 5
Summary · why it matters

Zacks Investment Research compared Redwire Corporation and AeroVironment, Inc., concluding that AeroVironment currently offers the better investment opportunity. Both companies benefit from rising defense spending and demand for advanced technologies, but AeroVironment has outperformed Redwire over the past month, with shares losing 22% versus a 48.4% decline for Redwire. AeroVironment also trades at a more attractive valuation, with a forward price-to-sales ratio of 3.21 times compared to Redwire's 5.20 times. While AeroVironment's earnings estimates have remained stable, Redwire's have moved lower over the past 60 days. Zacks assigns AeroVironment a Zacks Rank #3 (Hold) and Redwire a Zacks Rank #4 (Sell), advising investors to avoid Redwire at present.

Impact on assets 2

Defense & Geopolitical Fragmentation± Mixed
AeroVironment Inc
AVAV
▲ PositiveCapitalrelevance

Zacks ranks AeroVironment a Hold with better valuation and stable earnings estimates vs Redwire's Sell rating.

Redwire Corp
RDW
▼ NegativeCapitalrelevance

Zacks ranks Redwire a Sell with declining earnings estimates and higher valuation, advising to avoid.