With AeroVironment Stock Sliding, Have You Assessed The Risk?
AeroVironment (AVAV) stock is down 15.8% in a day. The recent slide reflects renewed concerns around delays in its SCAR program and revised profitability guidance, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where AeroVironment stands today.
- Size: AeroVironment is a $16 Bil company with $1.4 Bil in revenue currently trading at $330.89.
- Fundamentals: Last 12 month revenue growth of 79.9% and operating margin of -5.1%.
- Liquidity: Has Debt to Equity ratio of 0.05 and Cash to Assets ratio of 0.1
- Valuation: AeroVironment stock is currently trading at P/E multiple of -236.5 and P/EBIT multiple of -193.3
- Has returned (median) 41.5% within a year following sharp dips since 2010. See AVAV Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Very High valuation – making the stock Unattractive. For details, see Buy or Sell AVAV Stock
That brings us to the key consideration for investors worried about this fall: how resilient is AVAV stock if markets turn south? This is where our downturn resilience framework comes in. Suppose AVAV stock falls another 20-30% to $232 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- AVAV stock fell 61.0% from a high of $137.94 on 9 February 2021 to $53.78 on 28 January 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 December 2023
- Since then, the stock increased to a high of $409.83 on 13 October 2025 , and currently trades at $330.89
| AVAV | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -61.0% | -25.4% |
| Time to Full Recovery | 672 days | 464 days |
2020 Covid Pandemic
- AVAV stock fell 35.3% from a high of $72.16 on 5 February 2020 to $46.72 on 12 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 3 June 2020
| AVAV | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -35.3% | -33.9% |
| Time to Full Recovery | 83 days | 148 days |
2018 Correction
- AVAV stock fell 58.7% from a high of $119.83 on 18 September 2018 to $49.54 on 27 August 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 14 January 2021
| AVAV | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -58.7% | -19.8% |
| Time to Full Recovery | 506 days | 120 days |
2008 Global Financial Crisis
- AVAV stock fell 51.9% from a high of $40.03 on 13 February 2009 to $19.27 on 18 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 24 March 2014
| AVAV | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -51.9% | -56.8% |
| Time to Full Recovery | 1,832 days | 1,480 days |
Feeling jittery about AVAV stock? Consider portfolio approach.
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