AeroVironment, Inc. (NASDAQ:AVAV) shares are up almost 4% during Thursday’s premarket session as traders react to nearly 500 million in fresh U.S. Army contract news announced on Wednesday.
The company won a $464.8 million contract from the U.S. Army Portfolio Acquisition Executive for Fires program office for the Enduring-High Energy Laser (E-HEL) program.
Wins U.S. Army LOCUST Counter-UAS Contract
The award marks the first production contract for directed energy systems in U.S. history, moving laser weapon systems from the prototype stage into production.
Under the Other Transaction Agreement, AeroVironment will deliver dozens of LOCUST X3 laser weapon systems over the next few years to support multi-year fielding requirements and strengthen the Army’s layered air defense against Group 1-3 unmanned aircraft systems, while advancing directed energy as a key battlefield capability.
Read Also: AeroVironment Stock Drops Despite $100 Million Investment
The 30-kilowatt, platform-agnostic LOCUST X3 will be integrated with platforms including the Army’s Joint Light Tactical Vehicle, with palletized configurations also available. AeroVironment is evaluating potential integration with the Infantry Squad Vehicle and will provide ongoing system support and training as part of the program.
The E-HEL program builds on the Army’s AMP-HEL prototypes currently in use. The contract follows successful LOCUST testing at White Sands Missile Range, led by Joint Interagency Task Force 401 and PAE Fires, which demonstrated safe and effective counter-drone operations in U.S. airspace and directly enabled a DOW-FAA safety agreement validating the system for domestic use.
The move into production is expected to provide the Army with a sustainable, scalable and cost-effective counter-UAS solution.
Production ramp-up will be supported by a $30 million investment in AeroVironment’s Albuquerque, New Mexico facility, announced in March 2026.
AVAV Technical Outlook After Premarket Pop
The premarket pop is happening inside a longer-term downtrend: the stock is down 38.97% over the past 12 months and is still trading 29.8% below its 200-day SMA ($213.88). Even after the bounce, it remains 10.3% below the 20-day SMA ($167.39) and 5.4% below the 50-day SMA ($158.70), which keeps overhead supply in focus.
Momentum is best read through MACD right now: MACD is below its signal line and the histogram is negative, which points to upside pressure cooling unless buyers can rebuild momentum. Structurally, the 20-day SMA is above the 50-day SMA (a near-term positive), but the death cross from March (50-day below the 200-day) still argues the bigger trend hasn’t fully healed.
- Key Resistance: $162.50 — close to a prior rebound-stall zone and near the 50-day/short-term average cluster that can act as overhead supply
- Key Support: $140.50 — a nearby floor area that sits not far above the $135.20 52-week low zone (June), where buyers previously showed up
AVAV Earnings Preview And Analyst Price Targets
The countdown is on: AeroVironment is set to report earnings on September 9, 2026 (confirmed).
- EPS Estimate: 30 cents (Down from 32 cents YoY)
- Revenue Estimate: $462.84 million (Up from $454.68 million YoY)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $218.85 (high: $250.00; low: $166.00) across 32 analysts. Recent analyst moves include:
- Raymond James: Upgraded to Outperform (Target $210.00) (July 16)
- Citizens: Market Outperform (Lowers Target to $230.00) (July 10)
- Canaccord Genuity: Buy (Lowers Target to $240.00) (July 10)
How AeroVironment Ranks On Momentum And Trend Signals
Below is the Benzinga Edge scorecard for AeroVironment, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Weak (Score: 3.54) — The stock’s trend signals remain soft, lining up with the price still sitting below key longer-term moving averages.
The Verdict: AeroVironment’s Benzinga Edge signal reveals a momentum-light setup, where the premarket spike looks more like a news-driven bounce than a confirmed trend reversal. For longer-term bulls, follow-through above $162.50 would matter, while a slip back toward $140.50 would raise the risk that the rally fades.
AVAV Price Action: AeroVironment shares were up 4.18% at $151.47 during premarket trading on Thursday, according to Benzinga Pro data.
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