Trade-Ideas LLC identified

AeroVironment

(

AVAV

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified AeroVironment as such a stock due to the following factors:

  • AVAV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.6 million.
  • AVAV has traded 198.462999999999993860910763032734394073486328125 options contracts today.
  • AVAV is making at least a new 3-day high.
  • AVAV has a PE ratio of 6.
  • AVAV is mentioned 1.32 times per day on StockTwits.
  • AVAV has not yet been mentioned on StockTwits today.
  • AVAV is currently in the upper 20% of its 1-year range.
  • AVAV is in the upper 35% of its 20-day range.
  • AVAV is in the upper 45% of its 5-day range.
  • AVAV is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in AVAV with the Ticky from Trade-Ideas. See the FREE profile for AVAV NOW at Trade-Ideas

More details on AVAV:

AeroVironment Inc. designs, develops, produces, supports, and operates unmanned aircraft systems (UAS) and efficient energy systems (EES) in the United States and internationally. AVAV has a PE ratio of 6. Currently there are 2 analysts that rate AeroVironment a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for AeroVironment has been 130,000 shares per day over the past 30 days. AeroVironment has a market cap of $661.7 million and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.51 and a short float of 6% with 13.63 days to cover. Shares are down 2.7% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AeroVironment as a

hold

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 165.1% when compared to the same quarter one year prior, rising from $2.33 million to $6.16 million.
  • AVAV's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 8.33, which clearly demonstrates the ability to cover short-term cash needs.
  • 42.05% is the gross profit margin for AEROVIRONMENT INC which we consider to be strong. Regardless of AVAV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AVAV's net profit margin of 9.12% compares favorably to the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Aerospace & Defense industry and the overall market, AEROVIRONMENT INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • AEROVIRONMENT INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, AEROVIRONMENT INC reported lower earnings of $0.12 versus $0.59 in the prior year. For the next year, the market is expecting a contraction of 25.0% in earnings ($0.09 versus $0.12).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.