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

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In the latest trading session, Axon Enterprise (AXON - Free Report) closed at $720.53, marking a +1.29% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.06% for the day. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.39%.

Shares of the maker of stun guns and body cameras have depreciated by 1.92% over the course of the past month, underperforming the Aerospace sector's gain of 4.81%, and the S&P 500's gain of 3.94%.

The investment community will be paying close attention to the earnings performance of Axon Enterprise in its upcoming release. It is anticipated that the company will report an EPS of $1.63, marking a 12.41% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $699.57 million, up 28.53% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.91 per share and revenue of $2.72 billion, indicating changes of +16.33% and +30.33%, respectively, compared to the previous year.

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

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 5.49% lower. Axon Enterprise currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Axon Enterprise is holding a Forward P/E ratio of 103.01. For comparison, its industry has an average Forward P/E of 33.71, which means Axon Enterprise is trading at a premium to the group.

It's also important to note that AXON currently trades at a PEG ratio of 3.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 2.33 based on yesterday's closing prices.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. With its current Zacks Industry Rank of 34, this industry ranks in the top 14% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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