Back to top

Image: Bigstock

Axon Enterprise (AXON) Stock Falls Amid Market Uptick: What Investors Need to Know

Read MoreHide Full Article

Axon Enterprise (AXON - Free Report) closed the most recent trading day at $309.10, moving -0.08% from the previous trading session. This change lagged the S&P 500's daily gain of 0.11%. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.23%.

Shares of the maker of stun guns and body cameras have depreciated by 1.82% over the course of the past month, underperforming the Industrial Products sector's gain of 4.45% and the S&P 500's gain of 1.5%.

The upcoming earnings release of Axon Enterprise will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.98, reflecting a 11.36% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $437.52 million, reflecting a 27.54% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.48 per share and revenue of $1.93 billion, indicating changes of +8.21% and +23.32%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Axon Enterprise. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Axon Enterprise is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Axon Enterprise is holding a Forward P/E ratio of 69.02. Its industry sports an average Forward P/E of 21.35, so one might conclude that Axon Enterprise is trading at a premium comparatively.

The Security and Safety Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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