AeroVironment (AVAV) Introduces VAPOR 55 MX Helicopter UAS

AeroVironment, Inc. AVAV recently introduced its VAPOR Helicopter unmanned aircraft system (“UAS”), VAPOR 55 MX. A next-generation UAS, VAPOR 55 MX boasts the capability to deliver new levels of operational performance with a completely redesigned modular autonomy framework.

The addition of the UAS to AVAV’s well-established portfolio of intelligent, multi-domain robotic systems may further strengthen its presence in the UAS space. The multi-mission capability of the UAS should boost its order inflow prospects, enabling the company to capitalize on the growing demand.

Significance of VAPOR 55 MX Helicopter UAS

The VAPOR 55 MX is an easy-to-maintain system that incorporates highly versatile modular architecture and a tool-free rail system for the simple, efficient integration of third-party or custom payloads. It allows users to adapt to multi-sensor, multi-mission requirements, including utility inspection, aerial surveying, public safety and defense applications.

Moreover, it features a new sleek and efficient low-profile design that enables the helicopter to stay in the air 25% longer and operate in all weather conditions. It is capable of 65-pound gross take-off weight and can carry up to 22 pounds of usable payloads.

Due to its remarkable features, AeroVironment may witness a steady inflow of orders involving the UAS. This should bolster AVAV’s revenues from the UAS arena.

Growth Prospects

Intelligence, surveillance and reconnaissance data play a key role in any military mission. In this regard, an efficient UAS that ensures a high level of mission success and delivers multi-mission capabilities may witness a significant rise in demand due to the current threat environment.

Per the reports from Mordor Intelligence, the unmanned aerial vehicle market is likely to witness a CAGR of more than 7% during the 2022-2027 period. Such growth prospects entail opportunities for AeroVironment to capitalize on the increasing demand as it already enjoys an established position in the UAS market with its impressive product portfolio. The recent product launch by the company may further propel its growth trajectory in the UAS arena.

Other defense participants that enjoy a strong position in the UAS market and stand to benefit from the intensifying demand are as follows:

Lockheed Martin LMT: It has been delivering advanced autonomous systems to the U.S. Military and allies to meet customers’ most demanding missions. Its product range includes the X-44 Manta prototype, the Indago 3 unmanned drone and OUTRIDER.

Lockheed Martin’s long-term earnings growth rate is pegged at 5.5%. Shares of LMT have returned 18.6% value to investors in the past year.

Kratos KTOS: It possesses the technical expertise to design, build, operate and control some of the world’s most advanced unmanned platforms. Its UAS is capable of providing quick-reaction runway-independent UAV support. Its tactical UAS product range includes XQ-58A Valkyrie, UTAP-22 Mako and X-61A Gremlin, while the aerial drone target includes BQM-167A, BQM-177A and MQM-178 Firejet.

The Zacks Consensus Estimate for Kratos’ 2022 sales suggests a growth rate of 11.7% from the prior-year reported figure. KTOS boasts an average earnings surprise of 121.03% in the trailing four quarters.

Northrop Grumman NOC: Its Autonomous Systems unit provides unmanned autonomous aircraft systems, including high-altitude long-endurance, strategic ISR systems and vertical take-off and landing tactical ISR systems. Its programs include MQ-4C Triton, RQ-4 Global Hawk, North Atlantic Treaty Organization Alliance Ground Surveillance and MQ-8B and MQ-8C Fire Scout and BAT UAS.

Northrop Grumman boasts a long-term earnings growth rate of 2.2%. NOC’s investors have gained 33.3% in the past year.

Price Movement

In the past year, shares of AeroVironment have risen 8.3% compared with the industry’s growth of 2.7%.

Image Source: Zacks Investment Research

Zacks Rank

AeroVironment currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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