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Axon Enterprise (AXON) Beats Stock Market Upswing: What Investors Need to Know

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In the latest close session, Axon Enterprise (AXON - Free Report) was up +1.98% at $805.86. The stock exceeded the S&P 500, which registered a gain of 0.61% for the day. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.95%.

The stock of maker of stun guns and body cameras has risen by 3.61% in the past month, leading the Aerospace sector's gain of 1.1% and undershooting the S&P 500's gain of 3.85%.

Market participants will be closely following the financial results of Axon Enterprise in its upcoming release. The company is forecasted to report an EPS of $1.54, showcasing a 28.33% upward movement from the corresponding quarter of the prior 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.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.34 per share and revenue of $2.65 billion. These totals would mark changes of +6.73% and +27.17%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Axon Enterprise. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Axon Enterprise is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Axon Enterprise currently has a Forward P/E ratio of 124.67. This expresses a premium compared to the average Forward P/E of 38.37 of its industry.

It is also worth noting that AXON currently has a PEG ratio of 4.39. 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. As of the close of trade yesterday, the Aerospace - Defense Equipment industry held an average PEG ratio of 3.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 90, putting it in the top 37% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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