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Axon Enterprise (AXON) Gains As Market Dips: What You Should Know

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In the latest trading session, Axon Enterprise (AXON - Free Report) closed at $189.77, marking a +0.27% move from the previous day. This move outpaced the S&P 500's daily loss of 2%. Meanwhile, the Dow lost 2.06%, and the Nasdaq, a tech-heavy index, lost 2.32%.

Heading into today, shares of the maker of stun guns and body cameras had gained 0.16% over the past month, lagging the Industrial Products sector's gain of 5.08% and the S&P 500's gain of 2.88% in that time.

Investors will be hoping for strength from Axon Enterprise as it approaches its next earnings release, which is expected to be February 28, 2023. The company is expected to report EPS of $0.50, up 8.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $303.91 million, up 39.68% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Axon Enterprise. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.75% higher. Axon Enterprise is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Axon Enterprise has a Forward P/E ratio of 75.25 right now. Its industry sports an average Forward P/E of 19.37, so we one might conclude that Axon Enterprise is trading at a premium comparatively.

The Security and Safety Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AXON in the coming trading sessions, be sure to utilize Zacks.com.


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