Back to top

Image: Bigstock

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

Read MoreHide Full Article

Axon Enterprise (AXON - Free Report) closed the most recent trading day at $220.85, moving -1.63% from the previous trading session. This change lagged the S&P 500's daily loss of 1.58%. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 11.95%.

Prior to today's trading, shares of the maker of stun guns and body cameras had gained 2.7% over the past month. This has lagged the Industrial Products sector's gain of 3.08% and the S&P 500's gain of 4.27% in that time.

Axon Enterprise will be looking to display strength as it nears its next earnings release. 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.

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.

Any recent changes to analyst estimates for Axon Enterprise should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Axon Enterprise's current valuation metrics, including its Forward P/E ratio of 80.97. For comparison, its industry has an average Forward P/E of 21.62, 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 industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% 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.


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