Jim Cramer has reiterated his bullish stance on AeroVironment (AVAV), labeling the aerospace and defense technology firm a 'very compelling growth story' for the long term. The endorsement comes amid increasing demand for unmanned systems and defense innovation.
- AeroVironment (AVAV) reported $851 million in revenue for fiscal 2024, up 12% YoY
- Non-GAAP operating margins reached 15.8% in Q3 2024
- R&D spending accounted for 8.7% of revenue, supporting innovation pipeline
- U.S. and NATO defense budgets expected to grow at 4.3% annually through 2027
- AVAV outperformed the S&P 500 by 22 percentage points over the past 12 months
- Jim Cramer’s endorsement is expected to boost retail investor interest
Jim Cramer has voiced strong confidence in AeroVironment (AVAV), affirming the company's potential as a cornerstone of long-term growth within the defense technology sector. Cramer highlighted AVAV’s leadership in unmanned aerial systems and its diversified portfolio, which spans military drones, tactical robotics, and emerging energy solutions. His comments underscore growing investor interest in companies at the intersection of defense modernization and advanced automation. The company reported revenue of $851 million in fiscal year 2024, reflecting a 12% year-over-year increase, driven by sustained U.S. Department of Defense contracts and international demand. AVAV’s Q3 2024 earnings showed non-GAAP operating margins of 15.8%, a strong performance amid rising R&D investments. The firm continues to expand its product pipeline, including next-generation delivery drones and AI-integrated surveillance platforms. Market participants are closely watching AVAV’s trajectory, especially as defense budgets across NATO nations are projected to rise by an average of 4.3% annually through 2027. The stock has outperformed the S&P 500 by nearly 22 percentage points over the past 12 months, signaling robust investor appetite. Cramer’s endorsement is likely to amplify retail interest, particularly among growth-focused portfolios. While AVAV faces supply chain and geopolitical risks, its strategic positioning in high-growth niches—such as tactical drone systems and autonomous logistics—positions it for sustained relevance. Analysts note that the company’s R&D spend, at 8.7% of revenue, supports innovation momentum. The combination of contract visibility, technological differentiation, and macroeconomic tailwinds continues to strengthen its investment case.