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Axon Enterprise (AXON) Dips More Than Broader Markets: What You Should Know

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Axon Enterprise (AXON - Free Report) closed at $223 in the latest trading session, marking a -1.93% move from the prior day. This change lagged the S&P 500's daily loss of 0.58%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 1.54%.

Coming into today, shares of the maker of stun guns and body cameras had gained 2.71% in the past month. In that same time, the Industrial Products sector lost 2.92%, while the S&P 500 gained 2%.

Investors will be hoping for strength from Axon Enterprise as it approaches its next earnings release. In that report, analysts expect Axon Enterprise to post earnings of $0.46 per share. This would mark year-over-year growth of 2.22%. Meanwhile, our latest consensus estimate is calling for revenue of $312.07 million, up 21.7% from the prior-year quarter.

AXON's full-year Zacks Consensus Estimates are calling for earnings of $2.77 per share and revenue of $1.43 billion. These results would represent year-over-year changes of +26.48% and +19.95%, respectively.

Investors might also notice recent changes to analyst estimates for Axon Enterprise. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Axon Enterprise currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Axon Enterprise is currently trading at a Forward P/E ratio of 82.02. This represents a premium compared to its industry's average Forward P/E of 18.64.

The Security and Safety Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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