5 Red Days In A Row: AeroVironment Stock Is Down 24%
A steep five-day slide in this defense contractor’s stock prompts a closer look at the numbers behind the momentum.
A five-day slide in AeroVironment (AVAV) stock has erased about $2.3 Bil from the company’s market value. The stock has now moved LOWER for 5 consecutive trading days, a cumulative loss of 24.3%.
AeroVironment, Inc. supplies UAS, tactical missile systems, and related services primarily to organizations within the U.S. Department of Defense and to international allied governments.
The Streak Next To The S&P 500
Here is how AVAV stock stacks up against the S&P 500 over the streak and the periods around it:
| Return Period | AVAV | S&P 500 |
|---|---|---|
| 1D | -2.6% | 0.4% |
| 5D (Current Streak) | -24.3% | 1.2% |
| 1M (21D) | -18.1% | 2.6% |
| 3M (63D) | -18.6% | 11.0% |
| YTD 2026 | -40.2% | 10.7% |
| 2025 | 57.2% | 16.4% |
| 2024 | 22.1% | 23.3% |
| 2023 | 47.1% | 24.2% |
Does the business support this selling pressure?
The market may be weighing the company’s profitability. AeroVironment’s operating margin over the last twelve months is -5.9%, against an S&P 500 median of 18.4%. Its price-to-earnings multiple is -23.1, while the S&P 500 median is 24.6. This comes despite strong top-line figures, with revenue over the last twelve months growing 116.9%.
This move is specific to the stock; over the same 5 trading days the S&P 500 returned +1.2%. Such streaks are not unusual in the broader market, where 48 stocks are on losing streaks of 3 days or more, while 39 are on winning streaks.
So how should I think about a streak like this?
A streak is not a signal to buy or sell. It is a measure of sustained attention and momentum, forcing a fresh look at the underlying company. The disciplined next step is to weigh the price against the business fundamentals.
Here, the data shows a conflict between rapid revenue growth and a lack of profitability. That is a core question for any investor to resolve before making a move.
If the drop has you weighing an entry, resist buying a falling price alone. Our Buy the Dip screen ranks the marked-down names where growth and cash generation still support a recovery.
Those watching the group rather than this one name have another route: an aerospace & defense ETF like MISL owns the whole group. It is still a concentrated bet on that one theme, though, which is exactly the gap the portfolio below closes.
Weakness In One Name Should Be Noise, Not News
For a diversified holder, a streak like this is a data point. For a concentrated one, it is a hole in the plan. The difference is never the stock; it is the portfolio built around it.
Building that portfolio is what the Trefis High Quality (HQ) Portfolio does: roughly 30 businesses with the cash generation and balance-sheet strength to absorb a bad month, selected and rebalanced by rules. It has a track record of outpacing a benchmark that combines all major indices – the S&P 500, S&P Mid-cap, and Russell 2000. Make the next streak, in either direction, someone else’s drama.