TASER International Inc.
) share price jumped almost 13% on Wednesday, Jan 8, on the back
of a slew of orders received at the end of 2013. The company's
share price touched $18.57 yesterday, the highest not only in 52
weeks but even in more than six years.
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The company, in its latest update on stun-gun sales, revealed
that it has booked numerous new orders for its TASER brand
conducted electrical weapons (CEWs) and its next generation Smart
Weapons. The company had shipped most of the orders in the fourth
quarter of 2013 with the balance to be delivered in the first
quarter of 2014.
Although TASER did not disclose the financial details of these
sales, their value is expected to climb over $4.0 million as
gauged from the advertised list prices.
TASER is seeing increasing uptake on the back of its new Smart
Weapons platforms, as customers are eager to follow this market
transition. The majority of these orders were for its
next-generation electroshock Smart Weapons, which totaled over
5,000 from local, state and federal agencies. The company's new
Smart Weapon platforms offer significant improvements in safety,
effectiveness and accountability. As many as 13 clients have
ordered new TASER weapons while 29 agencies are already deploying
the TASER SMART weapons.
In addition, the company's international customers, though not
specified by TASER, have placed orders for 260 units of TASER's
X2 Smart Weapons, and 1,538 TASER X26s. The company also made
small-ticket sales of X2s, X26Ps, and TASER CAM HDs with orders
of less than 20 units each.
TASER invests considerably in upgrading existing and producing
new products that make life safer in public places. During the
third quarter, the company invested $2.4 million in research and
development expenses, up 22.9% from the year-ago comparable
Investors have reacted positively to TASER's latest order update
with demand expected to sustain through 2014. With a trailing
twelve-month Price-to-Earnings (P/E) of 55.34, a close watch on
the stock is warranted to see if this recent strength is
This Zacks Rank #4 (Sell) stock has however seen downward
revision to its Zacks Consensus Estimate in the past 60 and 90
days time frame. So, we would like to see tangible bottom-line
growth before recommending TASR.
Some better-ranked stocks in the sector include
Alliant Techsystems Inc.
Smith & Wesson Holding Corp.
Arctic Cat Inc.
). While Alliant Techsystems and Smith & Wesson carry a Zacks
Rank #1 (Strong Buy), Arctic Cat holds a Zacks Rank #2 (Buy).