Axon Enterprise (AXON) closed at $191.46 in the latest trading session, marking a -0.08% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.3%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 5.51%.
Coming into today, shares of the maker of stun guns and body cameras had gained 15.48% in the past month. In that same time, the Industrial Products sector gained 5.07%, while the S&P 500 gained 6.41%.
Axon Enterprise will be looking to display strength as it nears its next earnings release. On that day, Axon Enterprise is projected to report earnings of $0.50 per share, which would represent year-over-year growth of 8.7%. Our most recent consensus estimate is calling for quarterly revenue of $304.76 million, up 40.07% from the year-ago period.
Any recent changes to analyst estimates for Axon Enterprise should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Axon Enterprise is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Axon Enterprise is currently trading at a Forward P/E ratio of 75.68. This valuation marks a premium compared to its industry's average Forward P/E of 20.64.
The Security and Safety Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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 Nasdaq, Inc.
