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

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Axon Enterprise (AXON - Free Report) closed the most recent trading day at $434.12, moving -0.88% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.76%. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 1.01%.

The the stock of maker of stun guns and body cameras has risen by 13.53% in the past month, leading the Industrial Products sector's gain of 6.33% and the S&P 500's gain of 4.31%.

Analysts and investors alike will be keeping a close eye on the performance of Axon Enterprise in its upcoming earnings disclosure. In that report, analysts expect Axon Enterprise to post earnings of $1.21 per share. This would mark year-over-year growth of 18.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $526.43 million, up 27.28% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.91 per share and revenue of $2.04 billion, which would represent changes of +18.6% and +30.55%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Axon Enterprise. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Axon Enterprise is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Axon Enterprise is presently trading at a Forward P/E ratio of 89.25. For comparison, its industry has an average Forward P/E of 22.38, which means Axon Enterprise is trading at a premium to the group.

Meanwhile, AXON's PEG ratio is currently 4.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security and Safety Services was holding an average PEG ratio of 2.25 at yesterday's closing price.

The Security and Safety Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 39% of all 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.

To follow AXON in the coming trading sessions, be sure to utilize Zacks.com.


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