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Axon Enterprise (AXON) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest market close, Axon Enterprise (AXON - Free Report) reached $267.70, with a -0.78% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.6%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, lost 0.92%.

The maker of stun guns and body cameras's shares have seen an increase of 3.91% over the last month, not keeping up with the Industrial Products sector's gain of 5.78% and outstripping the S&P 500's gain of 3.56%.

The upcoming earnings release of Axon Enterprise will be of great interest to investors. The company's earnings report is expected on February 27, 2024. It is anticipated that the company will report an EPS of $0.86, marking a 22.86% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $418.97 million, showing a 24.64% escalation compared to the year-ago quarter.

It's also important for investors to be aware of any recent modifications to analyst estimates for Axon Enterprise. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection remained stagnant. Axon Enterprise presently features a Zacks Rank of #4 (Sell).

Investors should also note Axon Enterprise's current valuation metrics, including its Forward P/E ratio of 65.14. This denotes a premium relative to the industry's average Forward P/E of 19.98.

The Security and Safety Services industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 37, placing it within the top 15% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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