$Aerovironment(AVAV.US) surged over 10% in this wave. The direct catalyst was securing a $500 million contract from the Department of Defense, on top of the previous quarter's earnings which already exceeded expectations. The visibility of defense orders like drones and ammunition has been increasing over the past two years. The landing of a $500 million contract of this magnitude has made the market willing to reprice the order book. The trading volume also expanded to more than double, indicating it's not purely sentiment-driven. Next, we'll see if the delivery pace of this contract can be sustained into the guidance for the next few quarters.
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