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Here's Why Axon Enterprise (AXON) Fell More Than Broader Market
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In the latest close session, Axon Enterprise (AXON - Free Report) was down 1.34% at $407.80. The stock's change was less than the S&P 500's daily loss of 1.11%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1.88%.
The maker of stun guns and body cameras's stock has dropped by 6.5% in the past month, exceeding the Aerospace sector's loss of 7.8% and lagging the S&P 500's gain of 2.06%.
Market participants will be closely following the financial results of Axon Enterprise in its upcoming release. On that day, Axon Enterprise is projected to report earnings of $1.94 per share, which would represent year-over-year growth of 65.81%. In the meantime, our current consensus estimate forecasts the revenue to be $935.35 million, indicating a 31.62% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.88 per share and a revenue of $3.68 billion, representing changes of +15.04% and +32.26%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Axon Enterprise currently has a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Axon Enterprise is currently exchanging hands at a Forward P/E ratio of 52.44. This expresses a premium compared to the average Forward P/E of 31.66 of its industry.
It is also worth noting that AXON currently has a PEG ratio of 2.09. 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 average PEG ratio for the Aerospace - Defense Equipment industry stood at 2.04 at the close of the market yesterday.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Here's Why Axon Enterprise (AXON) Fell More Than Broader Market
In the latest close session, Axon Enterprise (AXON - Free Report) was down 1.34% at $407.80. The stock's change was less than the S&P 500's daily loss of 1.11%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1.88%.
The maker of stun guns and body cameras's stock has dropped by 6.5% in the past month, exceeding the Aerospace sector's loss of 7.8% and lagging the S&P 500's gain of 2.06%.
Market participants will be closely following the financial results of Axon Enterprise in its upcoming release. On that day, Axon Enterprise is projected to report earnings of $1.94 per share, which would represent year-over-year growth of 65.81%. In the meantime, our current consensus estimate forecasts the revenue to be $935.35 million, indicating a 31.62% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.88 per share and a revenue of $3.68 billion, representing changes of +15.04% and +32.26%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Axon Enterprise currently has a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Axon Enterprise is currently exchanging hands at a Forward P/E ratio of 52.44. This expresses a premium compared to the average Forward P/E of 31.66 of its industry.
It is also worth noting that AXON currently has a PEG ratio of 2.09. 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 average PEG ratio for the Aerospace - Defense Equipment industry stood at 2.04 at the close of the market yesterday.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.