AVAV

Two aerospace stocks, General Dynamics (GD) and AeroVironment (AVAV), are highlighted as potential earnings beat candidates based on positive Earnings Surprise Prediction (ESP) metrics. GD has a +2.36% ESP ahead of its October 30, 2026 earnings report, while AVAV shows a stronger +35.75% ESP before its December 8, 2026 report. Both stocks hold #3 (Hold) Zacks Rank ratings and could potentially outperform expectations.

AeroVironment (AVAV) fell 5.14% in recent trading, underperforming the S&P 500's 1.11% decline. The unmanned aircraft maker has lost 19.02% over the past month.

While revenue is expected to grow 7.68% next quarter and 11.71% for the full year, EPS is forecasted to decline 15.91% quarterly and 1.51% annually. The stock holds a Zacks Rank #3 (Hold) with a Forward P/E of 38.96, trading at a premium to its industry average of 31.66.

AeroVironment's VideoRay subsidiary was selected to support an AEVEX-led team for a U.S. Navy mine-countermeasure modernization prototype. VideoRay demonstrated autonomous underwater operations launched from an uncrewed surface vessel during competitive testing. The development builds on a $92.6 million Navy contract awarded in 2024 for production and development of the Defender platform.