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Axon Enterprise (AXON) Rises Higher Than Market: Key Facts

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Axon Enterprise (AXON - Free Report) ended the recent trading session at $425.84, demonstrating a +0.55% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 0.8%.

Shares of the maker of stun guns and body cameras witnessed a gain of 2.04% over the previous month, beating the performance of the Industrial Products sector with its loss of 1.5% and the S&P 500's loss of 0.97%.

The investment community will be paying close attention to the earnings performance of Axon Enterprise in its upcoming release. The company is slated to reveal its earnings on November 7, 2024. The company is forecasted to report an EPS of $1.21, showcasing a 18.63% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $526.43 million, indicating a 27.28% upward movement from the same quarter last year.

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.

Investors should also pay attention to any latest changes in analyst estimates for Axon Enterprise. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Axon Enterprise is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Axon Enterprise is currently being traded at a Forward P/E ratio of 86.3. Its industry sports an average Forward P/E of 21.41, so one might conclude that Axon Enterprise is trading at a premium comparatively.

One should further note that AXON currently holds a PEG ratio of 3.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Security and Safety Services industry had an average PEG ratio of 2.18 as trading concluded yesterday.

The Security and Safety Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.


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