Back to top

Image: Bigstock

Axon Enterprise (AXON) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Axon Enterprise (AXON - Free Report) closed at $215.72 in the latest trading session, marking a +1.04% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.34%.

Prior to today's trading, shares of the maker of stun guns and body cameras had gained 10.29% over the past month. This has outpaced the Industrial Products sector's loss of 4.87% and the S&P 500's loss of 1.21% in that time.

Wall Street will be looking for positivity from Axon Enterprise as it approaches its next earnings report date. On that day, Axon Enterprise is projected to report earnings of $0.46 per share, which would represent year-over-year growth of 2.22%. Our most recent consensus estimate is calling for quarterly revenue of $312.07 million, up 21.7% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.77 per share and revenue of $1.43 billion, which would represent changes of +26.48% and +19.95%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Axon Enterprise. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.47% lower. 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 77.01 right now. For comparison, its industry has an average Forward P/E of 18.61, which means Axon Enterprise is trading at a premium to the group.

The Security and Safety Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Axon Enterprise, Inc (AXON) - free report >>

Published in