Why AeroVironment Shares Are Flying High Today

Drones made by AeroVironment (NASDAQ: AVAV) are reportedly on their way to Ukraine, and investors believe the deployment might be a long-awaited inflection point for the young defense contractor. Shares are rallying as a result, up as much as 15% on Wednesday.

AeroVironment has long had a relationship with the Pentagon, making small-to-midsize unmanned aircraft (UAV) that are used for reconnaissance and to deliver weapons. But for most of its history the investment case surrounding this company had more to do with its potential sales than with its actual sales. For example, the U.S. Army purchased no AeroVironment Switchblade UAVs in fiscal 2021 after purchasing $48 million worth in 2020 and $183 million worth in years prior.

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Source Fool.com