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Axon Enterprise (AXON) Outperforms Broader Market: What You Need to Know

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In the latest trading session, Axon Enterprise (AXON - Free Report) closed at $795.48, marking a +2.7% move from the previous day. This move outpaced the S&P 500's daily gain of 0.83%. On the other hand, the Dow registered a gain of 0.77%, and the technology-centric Nasdaq increased by 1.02%.

The maker of stun guns and body cameras's stock has dropped by 0.7% in the past month, falling short of the Aerospace sector's gain of 2.79% and the S&P 500's gain of 4.99%.

The investment community will be closely monitoring the performance of Axon Enterprise in its forthcoming earnings report. The company's upcoming EPS is projected at $1.54, signifying a 28.33% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $641.21 million, indicating a 27.2% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $6.34 per share and a revenue of $2.65 billion, demonstrating changes of +6.73% and +27.17%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Axon Enterprise. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Axon Enterprise currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Axon Enterprise is currently trading at a Forward P/E ratio of 122.2. This signifies a premium in comparison to the average Forward P/E of 38.84 for its industry.

We can additionally observe that AXON currently boasts a PEG ratio of 4.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense Equipment industry currently had an average PEG ratio of 2.92 as of yesterday's close.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 75, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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