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

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In the latest trading session, Axon Enterprise (AXON - Free Report) closed at $728.74, marking a -1.03% move from the previous day. This change lagged the S&P 500's 0.3% loss on the day. Elsewhere, the Dow saw a downswing of 0.46%, while the tech-heavy Nasdaq depreciated by 0.38%.

Shares of the maker of stun guns and body cameras witnessed a loss of 11.07% over the previous month, trailing the performance of the Aerospace sector with its gain of 3.7%, and the S&P 500's gain of 3.64%.

Investors will be eagerly watching for the performance of Axon Enterprise in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 4, 2025. 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. In the meantime, our current consensus estimate forecasts the revenue to be $642.98 million, indicating a 27.55% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.35 per share and revenue of $2.66 billion, which would represent changes of +6.9% and +27.4%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Axon Enterprise. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.27% increase. Axon Enterprise is currently a Zacks Rank #2 (Buy).

Digging into valuation, Axon Enterprise currently has a Forward P/E ratio of 116.01. This represents a premium compared to its industry average Forward P/E of 38.41.

We can also see that AXON currently has a PEG ratio of 4.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense Equipment industry had an average PEG ratio of 2.9 as trading concluded yesterday.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 154, finds itself in the bottom 38% echelons 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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