The military economy continues to thrive as tensions continue. While Lockheed Martin (LMT) and RTX (RTX) are on an uptrend, AeroVironment (AVAV) is struggling.
The company posted a $0.43 non-GAAP EPS. The firm, which produces military drones and unmanned vehicles (“UAVs”), reported EPS falling by nearly 60%. Revenue increased by 5.9% Y/Y to 4197 million. The backlog decline to $400.2 million is disappointing.
For 2025, adjusted EPS is between $3.18 to $3.49.
In the clothing sector, Levi Strauss (LEVI) posted quarterly sales that missed expectations. Sales in the Americas increased by 17% Y/Y. The direct-to-consumer segment expansion missed the mark. It grew by 8% Y/Y. For FY 2024, it expects revenue to grow by 1% to 3%.
Investors wary of LEVI stock may consider Kontoor Brands (KTB).
In the drug manufacturing sector, watch out for weakness in GSK and Pfizer (PFE). The CDC advisors are recommending a narrower range for respiratory syncytial virus vaccines. Moderna (MRNA) is also a risky holding. New data indicated that efficacy is not as good as that of GSK or Pfizer vaccines.
In the auto sector, a day after Rivian (RIVN) rose following its deal with Volkswagen (VLKAF), VLKAF stock is at higher risk of underperforming. VW may overspend on the joint venture as the demand for vehicles falls.
