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Axon Enterprise (AXON) Stock Dips While Market Gains: Key Facts

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Axon Enterprise (AXON - Free Report) ended the recent trading session at $644.99, demonstrating a -8.47% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.4%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.66%.

Shares of the maker of stun guns and body cameras witnessed a loss of 6.13% over the previous month, trailing the performance of the Aerospace sector with its gain of 3.78%, and the S&P 500's gain of 1.02%.

Market participants will be closely following the financial results of Axon Enterprise in its upcoming release. The company is expected to report EPS of $1.63, up 12.41% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $699.57 million, indicating a 28.53% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.91 per share and revenue of $2.72 billion. These totals would mark changes of +16.33% and +30.33%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Axon Enterprise. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.49% lower. Axon Enterprise presently features a Zacks Rank of #3 (Hold).

Investors should also note Axon Enterprise's current valuation metrics, including its Forward P/E ratio of 102.04. This expresses a premium compared to the average Forward P/E of 34.25 of its industry.

Investors should also note that AXON has a PEG ratio of 3.57 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Aerospace - Defense Equipment industry was having an average PEG ratio of 2.48.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 250 industries.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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