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Are Aerospace Stocks Lagging Axon Enterprise (AXON) This Year?

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For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Axon Enterprise (AXON - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.

Axon Enterprise is a member of our Aerospace group, which includes 51 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Axon Enterprise is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for AXON's full-year earnings has moved 2.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, AXON has moved about 9.7% on a year-to-date basis. In comparison, Aerospace companies have returned an average of 2.9%. This shows that Axon Enterprise is outperforming its peers so far this year.

Another stock in the Aerospace sector, RTX (RTX - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 11.4%.

Over the past three months, RTX's consensus EPS estimate for the current year has increased 0.7%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Axon Enterprise is a member of the Aerospace - Defense Equipment industry, which includes 26 individual companies and currently sits at #152 in the Zacks Industry Rank. On average, stocks in this group have gained 1.1% this year, meaning that AXON is performing better in terms of year-to-date returns.

RTX, however, belongs to the Aerospace - Defense industry. Currently, this 24-stock industry is ranked #68. The industry has moved +3.5% so far this year.

Going forward, investors interested in Aerospace stocks should continue to pay close attention to Axon Enterprise and RTX as they could maintain their solid performance.


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