AeroVironment (AVAV) continued its steep downtrend in the last week. The defense contractor reported a 10.2% Y/Y decline in revenue.
AVAV stock fell after reporting a $0.30 EPS (non-GAAP) on revenue of $167.6 million. Its BlueHalo deal has project challenges. However, this transaction will increase the firm’s total market opportunity. AeroVironment increases its growth potential by adding electronic warfare and cyber solutions to its portfolio.
Nutrien (NTR) continued to trade at the high end of its $45 – $55 trading range. The firm benefited from President Trump’s issuing an exception for Canadian fertilizer. Mosaic (MOS) is also an attractive potash producer. However, Intrepid Potash (IPI) and Mosaic expect potash prices to rise in Q2, due to tariffs.
Investors may take advantage of tariff threats. They are creating an uncertain, unpredictable market for fertilizers. Bet on tariffs not materializing to their fullest extent. That would help drive fertilizer sales.
In the drugstore sector, Walgreens (WBA) jumped after Sycamore Partners offered to buy the stock for $11.45, plus $3.00 in non-transferrable at some point afterward. This additional $3 is dependent on Sycamore selling Walgreens’s primary-care assets. That includes VillageMD. Walgreens invested $5.2 billion in that unit in 2021 to take a controlling stake in the unit.
Walgreens management does not have the expertise to turn the pharmacy chain’s business around.
