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 $197.81 in the latest trading session, marking a +0.58% move from the prior day. This move outpaced the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 0.61%.

Heading into today, shares of the maker of stun guns and body cameras had lost 2.26% over the past month, lagging the Industrial Products sector's gain of 8.46% and the S&P 500's gain of 6.1% in that time.

Axon Enterprise will be looking to display strength as it nears its next earnings release. In that report, analysts expect Axon Enterprise to post earnings of $0.65 per share. This would mark year-over-year growth of 47.73%. Meanwhile, our latest consensus estimate is calling for revenue of $351.18 million, up 22.96% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.13 per share and revenue of $1.45 billion, which would represent changes of +42.92% and +22.16%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Axon Enterprise. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Axon Enterprise is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Axon Enterprise has a Forward P/E ratio of 62.83 right now. For comparison, its industry has an average Forward P/E of 18.83, 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 96, which puts it in the top 39% 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.

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

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