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Axon Enterprise (AXON) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest trading session, Axon Enterprise (AXON - Free Report) closed at $738.88, marking a -2.71% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.99% for the day. On the other hand, the Dow registered a loss of 0.23%, and the technology-centric Nasdaq decreased by 1.58%.

Coming into today, shares of the maker of stun guns and body cameras had gained 6.76% in the past month. In that same time, the Aerospace sector gained 2.55%, while the S&P 500 gained 3.59%.

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 November 4, 2025. 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.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.91 per share and a revenue of $2.72 billion, signifying shifts of +16.33% and +30.33%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Axon Enterprise. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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 past month, the Zacks Consensus EPS estimate has remained steady. As of now, Axon Enterprise holds a Zacks Rank of #3 (Hold).

Looking at valuation, Axon Enterprise is presently trading at a Forward P/E ratio of 109.97. This denotes a premium relative to the industry average Forward P/E of 35.33.

We can additionally observe that AXON currently boasts a PEG ratio of 3.85. 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 average PEG ratio for the Aerospace - Defense Equipment industry stood at 2.46 at the close of the market yesterday.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. With its current Zacks Industry Rank of 150, this industry ranks in the bottom 40% of all industries, numbering over 250.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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