In this video, Motley Fool industrials analyst Blake Bos takes a look at unmanned aircraft manufacturer AeroVironment (NASDAQ:AVAV) and its lackluster performance over the past few years. He discusses how the company has suffered recently in a difficult defense spending environment, but notes that the company recently received FAA approval for restricted commercial use. He believes that the optimism over the opportunity in the commercial/civilian sector is the reason the stock is trading at such a premium today, despite the pressures to its top line at the moment. Blake also examines the key things to watch from here and how to know if this opportunity will pan out.

Blake Bos has no position in any stocks mentioned. The Motley Fool recommends and owns shares of AeroVironment. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.