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

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Axon Enterprise (AXON - Free Report) ended the recent trading session at $312.88, demonstrating a -0.87% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.11% for the day. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.12%.

The maker of stun guns and body cameras's stock has climbed by 2.08% in the past month, falling short of the Industrial Products sector's gain of 7.65% and the S&P 500's gain of 3.55%.

The upcoming earnings release of Axon Enterprise will be of great interest to investors. The company is expected to report EPS of $0.98, up 11.36% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $437.52 million, indicating a 27.54% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.48 per share and a revenue of $1.93 billion, signifying shifts of +8.21% and +23.32%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Axon Enterprise. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

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.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 2.8% lower. Currently, Axon Enterprise is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Axon Enterprise currently has a Forward P/E ratio of 70.42. This denotes a premium relative to the industry's average Forward P/E of 21.69.

The Security and Safety Services industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 37, finds itself in the top 15% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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