TASER Jumps as Orders Flow In - Analyst Blog

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TASER International Inc. 's ( TASR ) 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.

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 period.

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 sustainable.

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. ( ATK ), Smith & Wesson Holding Corp. ( SWHC ) and Arctic Cat Inc. ( ACAT ). While Alliant Techsystems and Smith & Wesson carry a Zacks Rank #1 (Strong Buy), Arctic Cat holds a Zacks Rank #2 (Buy).



ARCTIC CAT INC (ACAT): Free Stock Analysis Report

ALLIANT TECHSYS (ATK): Free Stock Analysis Report

SMITH & WESSON (SWHC): Free Stock Analysis Report

TASER INTL INC (TASR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ACAT , ATK , SWHC , TASR

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