Today's

top partner

for CFD

Drone specialist AeroVironment (NASDAQ: AVAV) saw its stock gain notable altitude on Tuesday, thanks to an update from the company on a lucrative government contract. The company’s share price soared almost 8% higher on the day, comparing very favorably to the S&P 500‘s (SNPINDEX: ^GSPC) relatively marginal (0.7%) rise.

More Switchblades on the way

AeroVironment announced just after market close on Monday that it had been awarded a new delivery order for its Switchblade loitering munition systems. This is part of a broader contract worth as much as $990 million from the U.S. Army, totaling $288 million worth of the well-reputed drone system. It is also the third delivery order within the Army’s directed requirement for lethal unmanned systems contract.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »

In the press release divulging the news, AeroVironment quoted its general manager of loitering munition systems Brett Hush as saying that his company continues “to deliver for the U.S. Army with our superior supply chain and manufacturing capacity.”

The contract was awarded to AeroVironment in August 2024, and it was by far the largest in the company’s history. The Pentagon was clearly eager to partner with AeroVironment, as the language of the contract all but specified a call for Switchblades.

Justifiable popularity

AeroVironment is a popular defense stock these days, and for good reason. Drones have become a near-indispensable weapon of war, as evidenced by their heavy use in the Ukraine-Russia war. The company is on the cutting edge of military technology, and especially with the Army contract, it should remain a high-profile and important supplier.

Should you invest $1,000 in AeroVironment right now?

Before you buy stock in AeroVironment, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AeroVironment wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $714,954!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

Learn more »

*Stock Advisor returns as of February 3, 2025

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment. The Motley Fool has a disclosure policy.

Read the full story: Read More“>

Blog powered by G6

Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.

For any inquiries, please contact [email protected]