AeroVironment CEO Promotes Cost-Effective Laser Defense Despite Falling Stock Price
Despite AeroVironment's (NASDAQ:AVAV) recent $464 million Army laser contract and a record $1.5 billion funded backlog, the company’s stock has fallen by over 40% in the past year. CEO Wahid Nawabi highlighted on CNBC that his firm’s LOCUST directed-energy laser system can intercept drones at under $10 per shot—far cheaper than traditional methods costing millions—and claimed it is already operational along the U.S. southern border, having downed around 300 cartel drones. The Pentagon's FY2027 budget includes significant funding for counter-drone technologies, supporting Nawabi’s claim of a long-term demand profile lasting at least a decade. However, investors remain skeptical as CEO Nawabi sold nearly 28,300 shares recently and the stock trades at a forward P/E ratio of 47x despite strong earnings performance in Q1. The company's financials show progress: revenue reached $480 million with adjusted EPS beating estimates. Despite these fundamentals, AeroVironment did not make recent lists of top stocks to buy now.
Tickers: $AVAV
Topics: AeroVironment drone defense LOCUST laser stock performance